Moody's continues Nexen review

Moody's Investors Service said the Aa3 ratings and stable outlooks of Cnooc Ltd. and China National Offshore Oil Corp. are unchanged after the completion of Cnooc's $15 billion acquisition of Nexen Inc. on Tuesday, and Nexen's Baa3 senior rating and Ba1 subordinated debt rating remain under review for possible upgrade.

The agency is continuing its review of Nexen pending the finalization of its debt structure and the level of support by Cnooc to its bondholders, if any.

"We would like to reiterate that the acquisition will strengthen Cnooc Ltd.'s position as one of world's largest independent exploration and production companies and further diversify its product portfolio, in spite of its weakened credit metrics," Simon Wong, a Moody's vice president and senior analyst, said in an agency news release.

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