The Strategist

Fitch affirms China's CNPC and PetroChina ratings at "A+"

08/02/2022 - 11:14

The Chinese oil and gas firms CNPC and its subsidiary PetroChina's long-term issuer default rating (IDR) in both foreign and domestic currencies was affirmed by the international rating agency Fitch at "A+," with a stable rating outlook.

CEphoto, Uwe Aranas
CEphoto, Uwe Aranas
Fitch rated CNPC as one of the top energy firms in the world, with oil and gas output expected to reach 6.36 million barrels of oil equivalent per day in 2021 (up from 6.20 million bpd in 2020).

While noting that Chinese authorities have solid control over the board and management and considerable influence over the company's operations and direction in light of CNPC's strategic importance to national energy security, Fitch evaluates the status, ownership, and control of the corporation as "extremely strong."

According to the agency, CNPC is crucial to China's energy security and energy transition since it produces 66 percent of domestic natural gas and 52 percent of all domestic oil.

The agency anticipates that in 2022, CNPC's good performance in oil and gas exploration and production—driven by higher selling prices—will help counterbalance the downstream segment's subpar performance.