Fitch rates CNPC General Capital notes A+

Fitch Ratings said it assigned final ratings of A+ to CNPC General Capital Ltd.'s $750 million 1.45% guaranteed senior notes due 2016; $500 million 1.95% guaranteed senior notes due 2018; and $750 million 3.4% guaranteed senior notes due 2023.

The notes are irrevocably and unconditionally guaranteed by CNPC Finance (HK) Ltd.

The final rating follows a review of final documentation materially conforming to the draft documentation previously reviewed. The ratings are same as the expected ratings assigned April 9, the agency said.

The ratings reflect the irrevocable and unconditional guarantee by CNPC Finance, a wholly owned subsidiary of China Petroleum Finance Ltd. The latter is 51%-owned by China National Petroleum Corp. and 49%-owned by PetroChina Ltd.

The ratings reflect the integral and central foreign-currency treasury role of the company and the overall strong industry and financial metrics of the parent company, Fitch said.

The company's foreign-currency issuer default rating of A+ is constrained by its 100% owner, the Chinese government, the agency said.

The company's financial profile has weakened due to heavy capital expenditure and weaker cash generation from its mid-stream operations, Fitch said.

But, its strong operating profile as one of the world's largest integrated oil and gas companies makes it an AA category credit on a standalone basis, the agency said.

© 2015 Prospect News.
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