Oil Majors Face Ratings Cuts Amid Weak Recovery, S&P Global Says
- Exxon, Chevron failed to trim debt during the oil boom years
- If oil prices remain low, downgrades could be on the horizon
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Exxon Mobil Corp., Chevron Corp. and other oil majors could see their credit ratings slashed again if they fail to cut costs and reduce their growing debt loads in the next year, according to an S&P Global Ratings report.
The world’s largest drillers failed to take advantage of high prices during the boom years before 2014 to repay debt, according to the report published on Tuesday. Instead they embarked on costly investments in new projects and dividends, leaving them unprepared for the painful downturn that ensued.