The rating agency Moody’s puts pressure on the French oil company Total, and adjusts its Royal Dutch Shell files approach and BP in terms of oil price expected at $ 38 barrel in 2017 …
(Boursier.com) – in a survey of oil companies, Moody’s Investors Service downgraded the long-term credit rating unsecured Total ‘Aa1′ to ‘Aa3′ . In addition, the junior subordinated notes of the oil group was reduced from ‘Aa3′ to ‘A2′. The P-1 short-term rating is confirmed. The ratings outlook is all to ‘stable’. Moody’s has also conducted the rating adjustments BP and Shell.
Sanctioned because of weak oil prices
For the rating agency, this is reflect this approach “the continued pressure on operating cash flow and bring lasting weakness in oil prices.” Moody’s also said :: “The degradation of Total rating primarily reflects our anticipation of a prolonged maintenance of low oil prices in 2016 and 2017. They will continue to weigh on the operating cash flow and Total lending criteria.”
deleveraging difficult
Moody’s added that Total reduced its operating and investment costs, but hardly to deleverage short term. The company divests to offset the negative free cash flow for the next two years, allowing Moody’s maintained a rating outlook to ‘stable’. Moody’s may revise its medium-term credit rating, when oil prices will rise again and if total payment of the cash dividend. The rating agency nevertheless expects from the French oil group of moderately negative cash flows in the next 3 years.
Adjustments notes of Shell and BP
Moody’s table -which on a price per barrel to 33 dollars in 2016, $ 38 in 2017 and $ 43 in 2018- was also downgraded to ‘Aa1′ to ‘Aa2′ credit rating of Royal Dutch Shell. This new appreciation is accompanied by a credit perspective ‘negative’. In other words, Moody’s maintains pressure on the group waving the prospect of future degradation. Moody’s has finally confirmed to ‘A2′ long-term rating of BP. This is coupled with a perspective ‘positive’.
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