S&P rates Cnooc notes AA-

Standard & Poor's said it assigned an AA- long-term issue rating and cnAAA long-term Greater China regional scale rating to a proposed issue of dollar-denominated senior unsecured notes that Cnooc Ltd. will unconditionally and irrevocably guarantee.

Cnooc Nexen Finance (2014) ULC, a newly established special purpose entity, will issue the notes.

The proceeds will be used to refinance its wholly owned subsidiary Nexen Energy ULC under the $2 billion facility agreement and for general corporate purposes.

The ratings reflect the company's A stand-alone credit profile and an opinion that there is an extremely high likelihood that the government of China will provide extraordinary support in the event of distress, S&P said.

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