Fitch Ratings has given an A- long-term local currency issuer default rating, with a stable outlook, to China Oilfield Services (HKG:2883, SHA:601808), according to a recent release.

The company's ratings are closely aligned but not equal to the assessment on parent China National Offshore Oil, stemming from a "high" operational incentive and "medium" strategic incentive for the parent to provide support, Fitch said.

The rating agency also handed an A- rating to wholly owned subsidiary COSL Singapore Capital's proposed yuan offshore guaranteed bonds.

The parent will unconditionally and irrevocably guarantee the proposed bonds, which have the same rating as the parent's local currency issuer default rating.

Fitch assesses China National Offshore Oil's strategy and investments as a national oil company having a close alignment with the central government's strategic objectives for energy security and energy transition.

China Oilfield Services' service provision to its parent contributes about 80% to its total revenue, with the parent's increased domestic oil and gas production commitment to offer stable work volume for the subsidiary's domestic business, Fitch said.

The company should post generally steady EBITDA performance over the next four years given an expanding well services segment, while its balance sheet should continue to be solid, Fitch said.

The company has a "bbb" standalone credit profile given its solid financial metrics with neutral-to-positive free cash flow through the cycle.

Significant shifts in Fitch's view of the parent's credit profile and incentives to support its subsidiary could trigger future rating actions.