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Issuer Ranking: European And CIS Oil And Gas Companies, Strongest To Weakest Feb 09
Standard & Poors, Feb 2009
Abstract
2009 is shaping up to be a hard year for oil and gas companies worldwide. Under Standard & Poor's Ratings Services' recently revised working assumptions for $40/barrel (bbl) Brent and $5/million British Thermal Unit (mmBTU) for U.S. Henry Hub in 2009, we expect to see negative free cash flow (after capital expenditures and dividends) at many companies (see 'Standard & Poor's Oil And Gas Pricing Assumptions: Short Term Lowered Again, But Long-Term Factors Still Supportive,' published Jan. 22, 2009, on RatingsDirect). These prices compare with 2008 averages of $98/bbl and $8.8/mmBTU, but are still higher than $38.3/bbl and $4.4/mmBTU in 2004. However, cost inflation and capital expenditure levels have soared since 2004. The outlook for downstream profits is very bleak,...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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