Fitch Ratings has upgraded China Steel Corporation’s (CSC) National Long-Term Rating to ‘AA(twn)’ from ‘AA-(twn)’ and affirmed the National Short-Term Rating at ‘F1+(twn)’. Fitch has also upgraded CSC’s senior unsecured rating to ‘AA(twn)’ from ‘AA-(twn)’. The Outlook on the National Long-Term Rating is Stable.
The upgrade follows Fitch’s recent upgrade of Taiwan’s Long-Term Issuer Default Rating (IDR) to ‘AA’ from ‘AA-‘ on 10 September 2021 as well as the release of the updated Taiwanese National Ratings correspondence table on 6 October 2021. In addition, Fitch expects the linkage between CSC and the Taiwanese government to remain intact.
The rating on CSC is three notches lower than the best risk in Taiwan (AA/Stable), based on a top-down approach under Fitch’s Government-Related Entities Rating Criteria in conjunction with the National Scale Ratings Criteria. The top-down approach reflects CSC’s high strategic and operational linkages with the Taiwanese government.