S&P Lowers Shell's Rating, Puts Other Oil Majors on Watch
- Other Europe-based integrated majors may be downgraded
- Spending cuts, cost savings not matching price drop, S&P says
Inside the Faltering Oil Rally
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Royal Dutch Shell Plc had its debt rating cut to the lowest since Standard & Poor’s began coverage in 1990, and downgrades of several other major European oil and gas companies will probably follow in coming weeks.
The long-term credit rating for the world’s third-largest oil producer by market value was reduced one level to A+, the fifth-highest investment grade, from AA-, and was placed on watch for another possible reduction, the ratings company said in a statement Monday. S&P also assigned a negative outlook to BP Plc, Eni SpA, Repsol SA, Statoil ASA and Total SA.