S&P: CNPC Finance notes A+

Standard & Poor's said it assigned an A+ long-term issue rating and cnAAA long-term Greater China regional scale rating to a proposed issue of dollar-denominated senior notes that CNPC Finance (HK) Ltd.

The agency said it equalizes the issue ratings with CNPC Finance's other ratings because of its unconditional and irrevocable guarantee. It is a wholly owned subsidiary of China Petroleum Finance Co. Ltd., which is in turn 51%-owned by China National Petroleum Corp. and 49% owned by PetroChina Ltd.

The rating is one notch lower than that on CNPC Finance because it is highly strategic, but not core to the group, S&P said.

The ratings reflect CNPC Finance's AA stand-alone credit profile, which is based on its excellent business risk profile and modest financial risk profile, the agency said.

There also is an extremely high likelihood that the government of China will provide sufficient and timely extraordinary support to CNPC Finance in the event of financial distress, S&P said.

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