Research Update: CITIC Resources Holdings Ltd. Outlook Revised To Stable On Lower Oil Prices; 'BB-' Rating Affirmed

S&P Global Ratings has lowered its Brent crude oil price assumption to US$40 per barrel for the rest of 2020 and US$50 per barrel in 2021. Our assumption for 2022 and thereafter remains unchanged at US$55 per barrel. Consequently, we believe the debt-to-EBITDA ratio for CITIC Resources Holdings Ltd. (CRH) will increase significantly and no longer trend toward our original expectation of 5.0x. On March 18, 2020, S&P Global Ratings revised its outlook on CRH to stable from positive. At the same time, we affirmed our 'BB-' long-term issuer credit rating on the China-based oil producer. The stable outlook reflects our expectation that CRH's leverage will remain high amid low oil prices. It also reflects our view that the company

...- S&P Global Ratings has lowered its Brent crude oil price assumption to US$40 per barrel for the rest of 2020 and US$50 per barrel in 2021. Our assumption for 2022 and thereafter remains unchanged at US$55 per barrel. - Consequently, we believe the debt-to-EBITDA ratio for CITIC Resources Holdings Ltd. (CRH) will increase significantly and no longer trend toward our original expectation of 5.0x. - On March 18, 2020, S&P Global Ratings revised its outlook on CRH to stable from positive. At the same time, we affirmed our '##-' long-term issuer credit rating on the China-based oil producer. - The stable outlook reflects our expectation that CRH's leverage will remain high amid low oil prices. It also reflects our view that the company will continue to receive strong ongoing and extraordinary support from its parent CITIC Group Corp. over the next 12-24 months....

Research Update