Bulletin: CITIC Resources Holdings' Planned Oilfield Disposal Is Unlikely To Lower Leverage

HONG KONG (S&P Global Ratings) Sept. 5, 2018--S&P Global Ratings today said that CITIC Resources Holdings Ltd.'s proposed sale of a major China-based oil field will not significantly change the company's leverage. This is because we expect CITIC Resources would use the sizable proceeds to acquire other oil assets. As such, the planned disposal should not have a material impact on company's credit profile or affect the issuer credit rating (BB-/Stable/--) We believe the temporary downsizing and proactive search for new oil and gas assets is in line with CITIC Resources' planned asset restructuring to optimize its business profile. In our view, the proposed transaction does not change the company's status as the main oil platform of CITIC Group Corp.

...HONG KONG (S&P Global Ratings) Sept. 5, 2018--S&P Global Ratings today said that CITIC Resources Holdings Ltd.'s proposed sale of a major China-based oil field will not significantly change the company's leverage. This is because we expect CITIC Resources would use the sizable proceeds to acquire other oil assets. As such, the planned disposal should not have a material impact on company's credit profile or affect the issuer credit rating (##-/Stable/--) We believe the temporary downsizing and proactive search for new oil and gas assets is in line with CITIC Resources' planned asset restructuring to optimize its business profile. In our view, the proposed transaction does not change the company's status as the main oil platform of CITIC Group Corp. On Aug. 29, 2018, CITIC Resources announced plans to sell its stake in the Hainan-Yuedong oilfield to Shanghai-listed Geo-Jade Petroleum Corp. for a cash consideration of no less than U.S.$ 765.6 million. CITIC Resources said it intends to use...

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