Fitch Ratings Sees State Support Driving SWF Ratings
Posted on 12/02/2020
Fitch Ratings Inc., one of the major credit rating agencies, recently released a report covering sovereign wealth funds and strategic holding companies. The ratings agency reports that large government investment vehicles have long-term economic targets, but only a few of them are debt issuers and rated entities. The ratings agency sees that there is a growing tally of SWFs and strategic holding companies that are utilizing international markets to diversify funding sources and increase the size of their asset portfolios. Some prime examples include Temasek Holdings and Mubadala Investment Company.
The press release adds, “Fitch rates nine entities generally referred to as SWFs by market participants under its Government-Related Entities (GRE) Rating Criteria and distinguishes two subsets of SWFs: pure SWFs and national strategic holding companies (NSHCs). SWFs and NSHCs have in common management of large equity holdings, which are often cross-border.”
