Repsol SA (REP)’s credit outlook was upgraded to stable from negative by Fitch Ratings, which cited improved earnings and business performance by Spain’s largest oil and gas company.
Fitch kept the Madrid-based energy producer’s rating unchanged at BBB-, one step above junk status. It had cut the rating one step from BBB in June and said it might downgrade Repsol after the company’s YPF unit was expropriated by Argentina’s government in April without compensation.
“Their third-quarter results were healthy, and our expectations going forward are for limited downside potential,” Jeffrey Woodruff, an analyst at Fitch, said today in an interview. “There’s less chance of a deterioration in their credit profile that would warrant a downgrade.”
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