{"id":19321,"date":"2012-07-24T23:33:03","date_gmt":"2012-07-25T03:33:03","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19321"},"modified":"2012-07-24T23:33:03","modified_gmt":"2012-07-25T03:33:03","slug":"nxy-placed-on-review-positive-by-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19321","title":{"rendered":"NXY Placed on Review-Positive by S&amp;P"},"content":{"rendered":"<p>Standard &#038; Poor&#8217;s <a href=\"http:\/\/www.standardandpoors.com\/prot\/ratings\/articles\/en\/us\/?articleType=HTML&#038;assetID=1245337299178\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>CNOOC Ltd. (AA-\/Stable\/&#8211;; cnAAA\/&#8211;) has agreed to acquire Nexen Inc. in a transaction valued at about C$19.4 billion, including assumption of<br \/>\ndebt.<\/p>\n<li>We are placing our ratings, including our &#8216;BBB-&#8216; long-term corporate credit rating, on Nexen on CreditWatch with positive implications.\n<li>The CreditWatch placement reflects the potential that we might raise our ratings on the company to match CNOOC&#8217;s stand-alone credit profile of &#8216;a&#8217; upon the transaction&#8217;s completion.\n<li>We expect to resolve the CreditWatch placement before the end of 2012.<\/ul>\n<\/blockquote>\n<p>S&#038;P <a href=\"http:\/\/www.standardandpoors.com\/prot\/ratings\/articles\/en\/us\/?articleType=HTML&#038;assetID=1245337330701\">also announced<\/a>:<\/p>\n<blockquote><p>that the rating on China-based CNOOC Ltd. (AA-\/Stable\/&#8211;; cnAAA) is not immediately affected by the company&#8217;s proposed acquisition of Nexen Inc. (BBB-\/Watch Pos\/&#8211;). In our view, the US$15.1-billion acquisition is larger than previous CNOOC deals in recent years and could test the company&#8217;s integration ability.<\/p>\n<p>Standard &#038; Poor&#8217;s sees the acquisition as consistent with CNOOC Ltd.&#8217;s strategy to expand outside China. The transaction, once completed, would increase CNOOC Ltd.&#8217;s proven reserves by about 30% and production by about 20%. More importantly, it provides a good opportunity for CNOOC Ltd. to diversify its operations materially in the low-risk member countries of the Organization for Economic Cooperation and Development (OECD). At the end of 2011, more than 71% of CNOOC Ltd.&#8217;s reserves are off the coast of China, and over 20% of reserves are in countries with high sovereign risks. After the acquisition, CNOOC Ltd.&#8217;s reserves in China will fall to 56% and its reserves in OECD countries would increase to above 28%.<\/p><\/blockquote>\n<p>NXY has issued a single preferred share issue, NXY.PR.A, which is tracked by HIMIPref&trade;.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Standard &#038; Poor&#8217;s has announced: CNOOC Ltd. (AA-\/Stable\/&#8211;; cnAAA\/&#8211;) has agreed to acquire Nexen Inc. in a transaction valued at about C$19.4 billion, including assumption of debt. We are placing our ratings, including our &#8216;BBB-&#8216; &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-19321","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19321"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19321\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}