Fitch: Kunlun Energy notes A

Fitch Ratings said it assigned a final rating of A to Kunlun Energy Co. Ltd.’s senior unsecured notes.

The dollar-denominated notes were issued in two tranches: $500 million 2 7/8% notes due 2020 and $500 million 3¾% notes due 2025.

The ratings are closely aligned with the credit profile of its ultimate parent, China National Petroleum Corp. in line with the agency’s methodology for parent and subsidiary ratings, Fitch said.

Kunlun is rated one notch below China National Petroleum’s rating due to the close strategic and operational linkages, the agency said, and the significant support Kunlun has received from its parent and its subsidiary, PetroChina Co. Ltd.

Kunlun’s strong standalone credit profile is A-, reflecting predictable cash flow generated from its strategic Shaanxi-Beijing Line and robust credit metrics, Fitch added.

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