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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160126006677/en/
Copyright Business Wire 2016
Source: Business Wire
(January 26, 2016 - 4:22 PM EST)
News by QuoteMedia
www.quotemedia.com