STANDARD & Poor's has assigned the minimum investment grade of BBB-minus to Shanghai International Trust and Investment Corp (Sitic) amid uncertainties over its finances.
It is the first rating for Sitic by the credit-rating agency and the third rating for a mainland provincial investment arm.
Although Sitic is backed by the Shanghai authorities, the agency had doubts over the city's financial position and its ability to support Sitic.
The agency found it difficult to assess the indebtedness and other liabilities incurred by enterprises acting on behalf of the city government.
Uncertainties also hovered over the financial position of enterprises under the leadership of the city government.
The responsibility of the city government for those enterprises' liabilities are also clouded. Shanghai's enormous infrastructure needs and growing public service demands were likely to exert pressure on the city's finances.
