Moody’s to review Chinese majors’ ratings
NEW YORK, February 18, 2016 – Rating agency Moody’s Investors Service announced Wednesday it would review for downgrade the ratings of Chinese majors China National Petroleum Corporation, China Petrochemical Corporation, Sinopec, China National Offshore Oil Corporation and China National Offshore Oil Corporation, currently all holding a Aa3 rating. The review process also applies to the mentioned companies’ subsidiaries.
Moody’s points to the forecast weaker cashflow, especially for those companies with substantial upstream operations, chief among them China National Petroleum Corporation and China National Offshore Oil Corporation, as risk factors.
Earlier this week, Sinopec said it would shut down four fields at Shengli, China’s second-largest producing oilfield.