Research Update: Woodside Petroleum Ltd. 'BBB+' Ratings Affirmed; Outlook Negative

S&P Global Ratings has revised its industry risk assessment on the oil and gas exploration and production sector to moderately high from intermediate. We believe Woodside Petroleum Ltd.'s higher exposure to liquified natural gas (LNG) relative to peers and its low-cost portfolio of assets somewhat mitigate the heightened industry risk. We are affirming our 'BBB+' long-term issuer credit rating on Perth-based LNG company Woodside. We are also affirming our 'BBB+' issue rating on the company's senior unsecured debt. The negative outlook reflects our view of Woodside's materially weakened financial headroom ahead of its next major capital expenditure (capex) phase. The transition will continue to accelerate due to the COVID-19 pandemic and the growing adoption of ESG investment mandates among global

...- S&P Global Ratings has revised its industry risk assessment on the oil and gas exploration and production sector to moderately high from intermediate. - We believe Woodside Petroleum Ltd.'s higher exposure to liquified natural gas (LNG) relative to peers and its low-cost portfolio of assets somewhat mitigate the heightened industry risk. - We are affirming our '###+' long-term issuer credit rating on Perth-based LNG company Woodside. We are also affirming our '###+' issue rating on the company's senior unsecured debt. - The negative outlook reflects our view of Woodside's materially weakened financial headroom ahead of its next major capital expenditure (capex) phase....

Research Update