Fitch affirms PetroChina

Fitch Ratings said it affirmed PetroChina Co. Ltd.'s long-term foreign-currency issuer default rating at A with a positive outlook, as well as its long-term local-currency issuer default rating at A+ with stable outlook. The agency also assigned PetroChina short-term foreign- and local-currency issuer default ratings of F1, a foreign-currency senior unsecured rating of A and a local-currency senior unsecured rating of A+.

Fitch said PetroChina's ratings are constrained by the sovereign ratings of China (long-term foreign-currency issuer default rating of A with positive view, long-term local currency issuer default rating of A+ with stable view and short-term foreign-currency issuer default rating of F1), given the government's majority ownership and the company's China-focused business portfolio.

PetroChina's ratings reflect its leadership position in China's oil and gas markets, substantial oil and gas reserve level, sound exploration and production capabilities and the integrated nature of its energy businesses, the agency said.

The ratings also reflect PetroChina's government support, high barriers of entry to the oil and gas industry and strong energy demand growth in China, Fitch added.

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