Fitch Ratings upgraded China Hainan Rubber Industry Group's (SHA:601118) long-term issuer default rating to BBB+ from BBB following an upgrade on its parent company, the debt watcher said Thursday morning.

The rating outlook is stable.

Fitch said the upgrade reflects Hainan Rubber's high strategic support incentive due to its role as the core operating entity of parent Hainan State Farms Investment Holdings Group or HSF.

Hainan Rubber also enjoys high operational support incentives due to its integration with the parent, with HSF utilizing Hainan Rubber's plantations for its tropical agriculture business.

The rubber company manages 2.5 million hectares of rubber plantations worldwide and operates 61 factories with a capacity of 2.4 million tonnes, Fitch said.

Shares fell 3% during afternoon trading on Thursday.