S&P rates KNOC notes AA

S&P said it assigned its AA long-term issue rating to the U.S.-dollar-denominated senior unsecured notes that Korea National Oil Corp. plans to sell.

“We equalize the issue rating on the proposed notes with the issuer credit rating on KNOC because we do not foresee any material structural or contractual subordination risks in the company's capital structure,” S&P said in a press release.

KNOC plans to use the proceeds for general corporate purposes.

The outlook is stable.

Moody's assigns KNOC notes Aa2

Moody's Investors Service said it assigned Korea National Oil Corp.’s planned senior unsecured dollar-denominated notes an Aa2 rating. The notes will be issued under KNOC's $10 billion global medium-term note program, which is rated (P)Aa2.

"The Aa2 rating primarily reflects our assessment of a very high likelihood of extraordinary support from and a very high dependence on the government of Korea," said Wan Hee Yoo, a Moody's vice president and senior credit officer, in a press release.

KNOC plans to use the proceeds for general corporate purposes.

The outlook is stable.

Fitch upgrades Jinchuan

Fitch Ratings said it upgraded Jinchuan Group Co., Ltd.'s long-term foreign-currency issuer default rating and foreign-currency senior unsecured rating to BBB from BBB-. The agency also upgraded Jinchuan's guaranteed $280 million of 4% senior notes due 2024 to BBB from BBB-.

“The upgrade reflects Jinchuan's improved stand-alone credit profile (SCP), which is driven by higher profitability, a stronger financial position, consistent cash flow generation and favorable market conditions over the next few years,” Fitch said in a press release.

The agency said it forecasts Jinchuan's readily marketable inventory-adjusted funds from operations net leverage was 1.7x in 2021, and will rebound to 2.3x in 2023, as it believes nickel and copper prices peaked in 2021 and will normalize in the next two to three years.

The outlook is stable.

Fitch assigns BB to Acu Petroleo notes

Fitch Ratings said it assigned an expected rating of BB to the fixed-rate senior secured notes of Acu Petroleo Luxembourg Sarl for up to $650 million due in 2035. Acu Petroleo SA will guarantee the notes and the structure will contemplate a legal and target amortization schedule, set to allow for the debt to be fully amortized in 10 years, through a target amortization cash sweep mechanism.

“Acu Petroleo Luxembourg’s rating reflects the characteristics of the underlying asset, an operational oil transshipment port whose revenue profile is exposed to contract renewal and volume ramp-up risks. The project expects volumes to increase as a result of the development of the Pre-Salt Fields which depends on long-term oil prices. The expected rating further reflects the regulatory model that does not impose minimum or maximum pricing restrictions and the expectation that the premium tariff, related to the reliability of the port's services, will at least remain stable during the following years,” Fitch said in a press release.

The outlook is negative.

S&P rates Sempra notes BBB-

S&P said it assigned its BBB- rating to Sempra Infrastructure Partners LP's senior unsecured notes.

“We rate the unsecured debt issued at SI's holding company BBB-, one notch below our issuer credit rating (ICR) of BBB on SI, because priority debt reflects more than 50% of SI's consolidated debt. We use a proportional consolidation approach to the extent of the company's ownership in projects, such as its 50.2% interest in the Cameron LNG LLC (A/stable) joint venture, to determine SI's consolidated debt,” S&P said in a press release. The agency assigned the BBB issuer rating in October.

The company could use the proceeds for general corporate purposes, which may include the repayment of certain indebtedness of its subsidiaries.

The outlook is negative.

Moody’s eyes two Mapletree entities

Moody’s Investors Service said it placed the ratings of Mapletree Commercial Trust, including its Baa1 issuer rating, and Mapletree Commercial Trust Treasury Co. Pte. Ltd. on review for downgrade and the ratings of Mapletree North Asia Commercial Trust on review for upgrade. The outlooks for MCT and Mcttc was stable

The agency also placed on review for upgrade the Baa3 guaranteed senior unsecured rating on the notes under Mapletree North Asia Commercial Treasury Co. (HKSAR) Ltd.'s EMTN program. DBS Trustee Ltd., in its capacity as the trustee of Mnact, guarantees the notes of Mapletree North Asia Commercial Treasury and programs of Mapletree North Asia Commercial Trust Treasury Co. (S) Pte Ltd. and Mapletree North Asia Commercial Treasury Co. The outlook for Mapletree North Asia and Mapletree North Asia Commercial Trust Treasury Co. (S) was stable before being placed on review.

The review follows the Dec. 31 announcement of the proposed merger of MCT and Mnact. The merger is to be conducted through the acquisition by MCT of all the issued and paid-up units in Mnact by way of a trust scheme of arrangement, the agency said. The transaction is expected to close by the end of June.

"The review for downgrade reflects the potential weakening of MCT's credit metrics and uncertainty around its financial policy following the merger with Mnact. However, the final impact remains uncertain as the merger is still subject to, amongst others, the approval of the unitholders," said Junling Tan, a Moody's analyst, in a press release.

"The review for upgrade reflects our expectation that Mnact's rating could benefit from its 100% ownership by MCT, following the completion of the proposed merger. However, the final impact on Mnact's rating will depend on our assessment of the likelihood of extraordinary support that MCT will provide to Mnact in case of distress," added Tan.

Fitch upgrades Freeport-McMoRan

Fitch Ratings said it upgraded Freeport-McMoRan Inc.'s (FCX) issuer default rating and senior unsecured debt ratings to BBB- from BB+. The recovery ratings of RR4 on the senior unsecured instruments have been removed. The agency revised the outlook to stable from positive.

“The upgrade reflects Fitch's expectation that consolidated total debt/EBITDA and FFO leverage will be sustained below 2.3x and 2.5x, respectively, supported by FCX's high-quality assets, strong liquidity and improved capital structure. Substantial completion of underground transition at Grasberg and guidance on the Indonesian smelter capex and financing provide visibility into cash flows to FCX once their economic interest in PT Freeport Indonesia (PT-FI) drops to about 49% from about 80% beginning in 2023,” the agency said in a press release.

In July, PT-FI entered a $1billion, five-year, unsecured bank credit facility, consisting of a $667 million term loan and a $333 million revolving credit facility, to support smelter financing. “FCX is evaluating additional debt at the PT-FI level, non-recourse to FCX to finance the smelter construction,” Fitch said.

Fitch has also affirmed Freeport Minerals Corp.'s (FMC) IDR and senior unsecured debt ratings at BBB-. The outlook is stable.

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