The S&P international rating agency has placed the ratings of several major world oil companies on CreditWatch with negative implications, Report informs referring to the rating agency.
S&P may lower ratings of Chevron, Exxon Mobil, Imperial Oil, Royal Dutch Shell, Shell Energy North America, Total, China Petrochemical, China Petroleum & Chemical Corporation, China National Offshore Oil Corporation, CNOOC, ConocoPhillips, Woodside Petroleum, and Canadian Natural Resources.
Significant challenges and uncertainties engendered by the energy transition, including market declines due to growth of renewables, pressures on profitability, recent and potential oil and gas price volatility, are increasing risks for oil and gas producers, the agency noted.
‘We aim to resolve these CreditWatch placements within a few weeks, focusing on the implications of the companies’ recalibrated business risk profiles, as well as other aspects of the relative creditworthiness of these companies,’ reads the report.
‘In addition, we are affirming our ‘A-/A-2’ ratings on BP PLC and our ‘BBB+/A-2’ ratings on Suncor Energy Inc. (BBB+/Negative/A-2) and revising both outlooks to negative from stable,’ the agency said.