Fitch assigns COSL a local currency issuer rating and a proposed bond rating of "A-"

Fitch Ratings has assigned a long-term local currency issuer default rating of "A-" to China Oilfield Services Limited (02883.HK), with a "Stable" outlook. Fitch also assigned an "A-" rating to the proposed issuance of RMB-denominated offshore secured bonds by COSL Singapore Capital Ltd., a wholly-owned subsidiary of China Oilfield Services.

The proposed bonds will be unconditionally and irrevocably guaranteed by China Oilfield Services. Given that the proposed bonds constitute direct, unsubordinated, and unsecured debt of China Oilfield Services, their rating is at the same level as the issuer default rating of China Oilfield Services. China Oilfield Services plans to use the proceeds from the issuance for refinancing existing debt and general corporate purposes.

China Oilfield Services is 50.86% owned by its parent company, China National Offshore Oil Corporation (CNOOC). According to Fitch's "Parent-Subsidiary Rating Linkage Criteria," the rating of China Oilfield Services is closely linked but not identical to Fitch's assessment of its parent company, CNOOC, reflecting a "strong" willingness of CNOOC to support China Oilfield Services at the operational level and a "moderate" willingness at the strategic level. Based on Fitch's "Government-Related Entities Rating Criteria," the credit profile of CNOOC is linked to China's sovereign rating (A/Stable)