...Oil Price Impact Muted: On the one-year anniversary of the collapse in crude prices, Rating Outlooks are generally Stable for U.S. exploration and production (E&P) companies. This is largely explained by a skew in Fitch's coverage list toward investment-grade (IG) E&P credits, as most IG E&Ps still have ample liquidity, capex flexibility and strong capital markets heading into the second year of the downturn. Approximately 93% of Fitch's coverage in the Oil & Gas sector have Stable Outlooks and 7% have Negative Outlooks. Outlooks Not the Whole Story: Negative Outlooks do not tell the whole story, as several high- yield issuers have already been downgraded due to their higher sensitivity to lower hydrocarbon prices (EXXI to CCC from B¡, Chesapeake to BB¡ from BB). Low oil prices have also had knock- on negative effects on energy-related credits, including refiner CITGO, which was downgraded to `B' from `BB¡' due to oil-induced weakness at ultimate parent PDVSA, and holding company Loews,...
