Moody's upgrades SGID rating same as China's sovereign

As the world witnesses economic downturn and widespread pressure on credit ratings with the hit of the COVID-19 pandemic, Fitch and Moody's have upgraded the company's credit rating, which reflects the full recognition and positive evaluation of the company's international business development performance by international authorities. The credit rating improvement of the company is mainly due to the following efforts:

First, the strategic importance of the international business to State Grid Corporation of China continues to rise. In 2020, on the basis of the long-term strategic goal of "building an international leading energy Internet enterprise with Chinese characteristics", State Grid Corporation of China put forward its overall development layout in the 14th Five-Year Plan period, which highlights the importance of the international business for the development of the company.

Second, the contribution of international operation continues to grow. State Grid International Development Limited has made progress in market expansion with quality and efficiency improved, and the asset scale of and operating performance of its overseas business have grown steadily, ensuring the stability of the company's rating fundamentals. Also, the increasing profit contribution of the company to State Grid Corporation of China has further fortified its strategic value.

Third, the company's risk control capability has been continuously enhanced. Since 2020, the company has expanded business in another two cities and further optimized its overseas asset investment portfolio. It has formulated a strategy for the return of overseas funds, increased the return of dividends from Brazil, and reduced stock asset foreign exchange and investment concentration risks. The company's ability to actively manage risks has been fully recognized by rating agencies.