• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 6 days Energy Armageddon
  • 4 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 2 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 1 day "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 11 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days The Federal Reserve and Money...Aspects which are not widely known
  • 3 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 11 days Wind droughts
  • 3 days Goldman Betting on Cryptocurrencies
  • 11 days Putin and Xi Bet on the Global South
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

The World’s Biggest Oil Firms Face Rating Downgrades

S&P Global Ratings warned this week it could very soon downgrade the ratings on some of the world’s biggest oil firms, citing increased risks coming from the energy transition, price volatility, and weaker profitability.  S&P Global Ratings placed the ratings on nine oil and gas majors and their subsidiaries on CreditWatch with negative implications, expecting to resolve the CreditWatch placements within a few weeks. The companies under CreditWatch negative include Exxon, Chevron, ConocoPhillips, Shell, Total, Canadian Natural Resources, and China Petroleum & Chemical Corp.

S&P also revised its outlooks on BP and Suncor Energy to ‘negative’ from ‘stable’.

The credit rating agency has revised its industry risk assessment to ‘moderately high risk’ from ‘intermediate risk’, due to the challenges the energy transition poses to those companies, the pressure on the firms’ return on capital, and the volatility in oil and gas prices. 

“We see these factors as more material for ratings now than they were previously,” S&P Global Ratings said in its note. 

The higher risk for the industry is not expected to result, in most cases, in a more than a one-notch downgrade. 

“This said, we cannot exclude a combination of the industry risk revision and other material factors leading to a two-notch downgrade, especially given the potential for negative surprises after the COVID-19 impacts in 2020,” the rating agency noted. 

Related: The Surprising Rise And Fall Of A Shale Superstar

S&P last downgraded an oil major in March 2020, when it cut the rating on ExxonMobil to AA from AA+ and downgraded the outlook to ‘negative’ from ‘stable’ to reflect the possibility of another downgrade “if the company does not take adequate steps to improve cash flows and leverage over the next 12 to 24 months.” 

The other U.S. and European oil majors haven’t been downgraded by S&P since the previous oil industry downturn in 2015-2016. 

Moody’s, for its part, said in November that the expansion of European oil majors into utilities is set to have a credit positive impact in the longer term as “it will improve chances of keeping social license for oil and gas companies.”  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News