Moody’s: Kunlun Energy bond A1

Moody’s Investors Service said it assigned a first-time A1 issuer rating to Kunlun Energy Co. Ltd.

Moody’s also said it assigned an A1 senior unsecured rating to the company’s proposed bond.

The outlook is stable.

The proceeds will be used for refinancing certain debt and general corporate purposes, Moody’s said.

The ratings reflect Kunlun Energy’s integral role in China National Petroleum Corp.’s downstream natural gas business and the parent’s robust track record of providing support, the agency said.

Kunlun Energy is China National’s key platform for downstream natural gas and liquefied natural gas operations, Moody’s said.

Kunlun Energy’s standalone credit strength is underpinned by its integrated business model, which includes a material level of regulated assets and a strong market position, the agency added.

China’s evolving regulatory regime and sluggish prospect of upstream and LNG businesses are key constraints for Kunlun Energy’s credit profile, Moody’s said.

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