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Oil majors face downgrades if crude prices stay below $50, S&P says

Published 07/12/2017, 11:18 AM
© Reuters.  Oil majors face downgrades if crude prices stay below $50, S&P says
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  • The world's big five oil companies would face increased credit rating downgrade pressures if crude prices stayed below $50/bbl on average until year-end 2018 and they did not compensate by cutting costs, S&P Global says.
  • S&P currently has negative outlooks on Exxon Mobil (XOM +0.5%), Chevron (CVX +0.5%) and Total (TOT +0.4%); the other global majors are BP (LON:BP) (BP +1.2%) and Royal Dutch Shell (LON:RDSa) (RDS.A, RDS.B).
  • "If oil prices persistently trend below our price assumptions ($50/bbl on average until the end of 2018), downgrade pressure for many ratings would increase without material and sufficient further cost and capex efficiencies, disposals, or other countermeasures against weak credit metrics for a sustained period," S&P says.
  • Now read: Will Exxon Mobil Deliver?


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