...Challenging Oil and Gas Sector Dynamics: Fitch Ratings expects oil prices to remain low for longer than we previously anticipated. Fitch's stress-case price deck, which is the basis for projects' ratings, assumes Brent will average USD45/bbl in 2016 before gradually recovering to USD55/bbl in 2018. Liquefied natural gas (LNG) revenues are also likely to be hurt by the softer LNG spot market. This market weakness will weigh on newer, higher-cost producers, whose performance depends on how much of their production is covered by long-term contracts and their commercial terms. Rated Oil & Gas Projects Resilient: Fitch considers that the credit profile of the oil and gas projects it rates will not be negatively affected by the oil price cyclical downturn. These projects are supported by break-even prices that are materially lower than current oil and LNG prices and a firm base of long-term, take-or-pay offtake contracts. The projects' credit profiles are further supported by solid operational...
