China's Sinopec on rating watch negative - Fitch

Mon. September 01, 2008; Posted: 03:29 AM

BEIJING, Sep 01, 2008 (XFN-ASIA via COMTEX) -- SNP | Quote | Chart | News | PowerRating -- Fitch Ratings said it placed China Petroleum and Chemical Corporation (Sinopec)'s long-term foreign and local currency issuer default ratings on rating watch negative.

It said that the decision was prompted by Sinopec's interim results for 2008, which showed a 77.3 pct decline in net profit.

The decline in Sinopec's profits was caused by losses in the company's refining segment brought about by domestic oil product price caps.

The action "reflects Fitch's increasing concern over the impact of the Chinese government's price restrictions on refined oil products and Sinopec's increasing reliance on subsidies to offset the declining profitability and liquidity," Fitch said.

david.stanway@xinhuafinance.com

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For full details on China Petroleum & Chemical Corporation ADS (SNP) click here. China Petroleum & Chemical Corporation ADS (SNP) has Short Term PowerRatings of 4. Details on China Petroleum & Chemical Corporation ADS (SNP) Short Term PowerRatings is available at This Link.

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