Fitch Ratings has started coverage of CSSC (Hong Kong) Shipping with an A grade.

The outlook for the shipowning unit of Chinese state shipbuilding group CSSC was also assessed as stable.

CSSC Shipping was established in 2012.

The rating reflects strong institutional support from CSSC, whose own A+ rating is based on support from the Chinese state.

"Fitch regards CSSC HK Shipping as a strategically important subsidiary of CSSC," the agency said.

"The leasing subsidiary facilitates CSSC's core shipbuilding business by helping group clients choose vessels and providing financing solutions. New orders referred by CSSC HK Shipping represent a significant amount of CSSC's total new orders," it added.

It also provides new ship orders itself during industry downturns and invests in new types of vessels, which demonstrates the group's shipbuilding capacity to global clients, Fitch said.

CSSC Shipping owns 100 vessels worth $5.6bn.

The management and operations are highly integrated with those of CSSC, the agency believes.

The subsidiary also benefits from the group's strong credit profile that supports access to credit facilities from leading state banks and bond markets.

CSSC guarantees some of CSSC HK Shipping's bank borrowings and has injected capital to support growth in the past few years.

The stable outlook reflects Fitch's expectation that CSSC HK Shipping's strategically important role and close integration with its parent will not change meaningfully.