January 26, 2016 - 4:22 PM EST
Print Email Article Font Down Font Up
Fitch: Ratings Outlook for U.S. Oil & Gas Revised to Negative on Lower Prices

Fitch Ratings has revised its 2016 rating outlook for the U.S. Oil & Gas industry to Negative from Stable, reflecting the impact of lower oil and gas prices, and Fitch's downward revision of its corporate oil & gas price deck earlier this month. These factors are likely to increase the number of negative ratings actions seen across the sector.

As of Jan. 24, 2015, approximately 29% of companies in Fitch's U.S. oil & gas portfolio had Negative Outlooks. Low prices hit high yield oil & gas issuers hard last year, and they remain under considerable stress in this downturn. Single 'B'-rated companies in particular face a variety of challenges, including a higher cost base, declining hedge coverage, lack of financeable assets and limited market access.

The credit impact of lower oil and gas prices is beginning to ripple out across the investment grade energy space. While most investment grade names have decent liquidity, cost positions, capex flexibility, and capital markets access, the current environment has pressured credit metrics enough to put downward pressure on ratings. Investment grade E&Ps currently on Negative Outlook include ConocoPhillips, Hess, and Southwestern Energy Company.

The full report, '2016 Outlook: U.S. Oil & Gas: Rating Outlook Shifts to Negative,' is available at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

2016 Outlook: U.S. Oil & Gas (Rating Outlook Shifts to Negative)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877034

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Mark C. Sadeghian, CFA, +1-312-368-2090
Senior Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Media Relations:
Alyssa Castelli, +1-212-908-0540
New York
alyssa.castelli@fitchratings.com


Source: Business Wire (January 26, 2016 - 4:22 PM EST)

News by QuoteMedia
www.quotemedia.com

Legal Notice