S&P: Kunlun Energy notes A+

Standard & Poor’s said it assigned an A+ long-term corporate credit rating to Kunlun Energy Co. Ltd.

The agency also said it assigned a cnAAA long-term Greater China regional scale rating to the company.

S&P also said it assigned an A+ long-term issue rating and cnAAA long-term Greater China regional scale rating to Kunlun’s proposed issue of senior unsecured notes.

The outlook is stable.

The ratings reflect a view that Kunlun is a strategically important subsidiary of China National Petroleum Corp., the agency said.

The ratings incorporate a three-notch uplift over Kunlun’s stand-alone credit profile of BBB+ to reflect support from the parent, S&P said.

The ratings also consider the company’s stable margins and predictable operating cash flows in the company’s gas pipeline transmission business, the agency said.

Its natural gas sales are well diversified in China and provide good revenue growth prospects, S&P said.

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