S&P Global Ratings has placed an A+ long-term issue rating on State Grid Overseas Investment's proposed renminbi senior unsecured notes, according to a Thursday release.

State Grid Corp. of China, the owner of the special-purpose vehicle, will guarantee the proposed notes.

The notes' rating is in line with the guarantor's issuer credit rating, considering the credit substitution effects and the guarantee, S&P said.

The guarantor's leverage is low, with a priority debt-to-total debt ratio of 34% as of end-2024, the rating agency said.

This eases possible lender disadvantages in case of a default, S&P said.

The power grid construction and operation company's stable outlook is similar to that of China's sovereign rating.

S&P expects the company to keep stable financial metrics, including a 35% to 40% ratio of funds from operations (FFO) to debt and 12x to 14x FFO cash interest coverage for 2025 to 2027.