Oil Sector Comparison: China and India

Overview
Fitch Ratings sees a number of similarities between the oil sectors in China and
India. While they both represent the fastest‐growing countries in the world, Fitch
considers that the Chinese oil sector has the better credit quality; given its larger
economy, coupled with its more industrialised economic structure, relatively welldeveloped
infrastructure, and the more integrated business portfolio of China’s
major oil companies. Fitch also believes that China (Foreign Currency Long‐Term
IDR of ‘A+’/Stable) has a stronger ability to support its oil sector, when needed,
than India (‘BBB‐’/Stable). Reflecting these key rating factors, Fitch has rated the
major Chinese oil companies higher than the major Indian ones.