Research Update: Exxon Mobil Corp. Ratings Lowered To 'AA-' On Revised Industry Risk Assessment; Outlook Negative

S&P Global Ratings recently revised the industry risk assessment for the oil and gas industry to moderately high from intermediate to reflect the growing risks from energy transition due to climate change and carbon/GHG emissions, weak industry profitability and greater expected volatility in hydrocarbon fundamentals. Due to our view of greater industry risk, we lowered our business risk profile for U.S.-based integrated oil company Exxon Mobil Corp. As a result, we are lowering our issuer credit and senior unsecured debt ratings on ExxonMobil to 'AA-' from 'AA' and removing them from CreditWatch, where we placed them with negative implications on Jan. 26, 2021. The short-term commercial paper rating remains 'A-1+'. The outlook is negative, reflecting ExxonMobil's currently high leverage and

...- S&P Global Ratings recently revised the industry risk assessment for the oil and gas industry to moderately high from intermediate to reflect the growing risks from energy transition due to climate change and carbon/GHG emissions, weak industry profitability and greater expected volatility in hydrocarbon fundamentals. Due to our view of greater industry risk, we lowered our business risk profile for U.S.-based integrated oil company Exxon Mobil Corp. - As a result, we are lowering our issuer credit and senior unsecured debt ratings on ExxonMobil to '##-' from '##' and removing them from CreditWatch, where we placed them with negative implications on Jan. 26, 2021. - The short-term commercial paper rating remains 'A-1+'. - The outlook is negative, reflecting ExxonMobil's currently high leverage and the potential for a further downgrade if we expect funds from operations to debt to remain well below 60% for a sustained period....

Research Update