U.S. stock futures slip lower; Cook’s firing increases Fed independence worries
Investing.com -- Fitch Ratings has revised its rating for Zhejiang Expressway Co., Ltd. (ZJE), lowering the Long-Term Issuer Default Rating (IDR), senior unsecured rating, and the rating of its USD470 million 1.638% senior unsecured notes to 'A' from 'A+'. The agency has kept the outlook stable.
The downgrade, announced on April 11, 2025, follows a similar action on Zhejiang Communications Investment Group Company Limited's (CICO) rating, which was reduced to 'A' from 'A+' on April 9, 2025. The change in CICO's rating was influenced by Fitch's internal credit assessment of the Zhejiang provincial government. Earlier on April 3, 2025, Fitch had also lowered China's sovereign rating to 'A' from 'A+', maintaining a stable outlook.
ZJE's rating is aligned with that of CICO, the largest provincial government-owned entity in Zhejiang, as per Fitch's Parent and Subsidiary Linkage Rating Criteria. This rating is based on ZJE's strong operational and strategic connections with CICO, and the consistent tangible support ZJE has received from its parent via asset injections.
Full rating rationales and disclosures for ZJE were published in the Rating Action (WA:ACT) Commentary on June 11, 2024.
Factors that could lead to a further downgrade include a downgrade of CICO's rating or a weakening of the linkages between CICO and ZJE. On the other hand, an upgrade of CICO's rating could lead to a positive rating action for ZJE, provided the linkages between CICO and ZJE remain intact. However, an upgrade seems unlikely at this point, as both CICO's and ZJE's ratings are currently aligned with the Chinese sovereign rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.