Fitch cuts PetroChina to AA-

Fitch Ratings said it affirmed PetroChina Co. Ltd.'s long-term foreign-currency issuer default rating and senior unsecured rating at A+ as well as its short-term foreign-currency issuer default rating at F1. The agency also downgraded PetroChina's long-term local-currency issuer default ratings and senior unsecured rating to AA- from AA and affirmed its short-term local-currency issuer default rating at F1+.

The outlook is stable.

The ratings reflect PetroChina's strategic importance to China and its privileged position holding a substantial portion of China's domestic oil and gas reserves, Fitch said.

The ratings reflect the strong linkage to the Chinese sovereign, as it is 86.29% owned by state-owned enterprise, China National Petroleum Corp., the agency said. This strong linkage has resulted in its ratings being constrained by China's sovereign ratings, leading to the downgrade in the long-term local-currency issuer default rating, Fitch added.

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