Exxon Mobil Loses Top Credit Rating
Exxon Mobil was demoted from the top credit rating by S&P for the first time since the Great Depression as the collapse of the biggest oil-market rally in history strangled cash flows.
The global crude explorer with sales that dwarf the economies of most nations sought to retain the ‘AAA’ rating when S&P placed it on notice in February. Citing concern that credit measures would remain weak through 2018, S&P warned Exxon that it was in danger of losing the top grade first bestowed on the oil giant in1930 and shared with just two other US corporations.
“Its debt level has more than doubled in recent years, reflecting high capital spending on major projects in a high commodity price environment and dividends and share repurchases that substantially exceeded internally generated cash flow," S&P wrote in the note.