Exxon Mo­bil Loses Top Credit Rat­ing

The Economic Times - - Economy: Macro, Micro & More -

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.

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