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Moody's: CNOOC Assigned Baa2 Long-Term Debt Issuer Rating
US rating agency Moody's Investors Service said Thursday it had assigned a Baa2 long-term debt issuer rating to China National Offshore Oil Corporation (CNOOC) Ltd. ahead of its listing.
Moody's said in a statement the rating was the first assigned on the CNOOC, ahead of its planned listing in the US and Hong Kong stock markets later this year.
It added the rating outlook for the company was stable.
"The Baa2 rating reflects CNOOC Ltd.'s position as the dominant oil and gas exploration and production company offshore China, its considerable financial flexibility, its competitive cost structure, and the existing supportive regulatory environment," it said in a statement.
"The rating also recognizes CNOOC Ltd's solid cash flow and debt protection measures relative to other independent exploration and production companies on a global basis," the agency added.
However, Moody's said the rating was tempered by the likely impact on revenue of volatility in oil prices, the potential for increased capital demand from its majority shareholder, and the inherent regulatory uncertainty as the industry and regulatory system continue to evolve."
CNOOC has priced its issue of 40 million American depository shares (ADS) at an indicative price US$18 (HK$126), according to its filing to the US Securities and Exchange Commission.
Under its initial public offering, one ADS is equivalent to 20 shares, putting the issue price in Hong Kong at around HK$7.00.
CNOOC is expected to issue 1.64 billion shares to raise about US$1.2 billion.
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