Australia-based oil and gas company Woodside Petroleum Ltd. is facing a severe downturn with lower oil and liquefied natural gas (LNG) prices. This comes at a time of elevated capital investment, with a final investment decision likely over the next three to six months for Woodside's major Scarborough and Pluto LNG integrated project. Under our revised oil price assumptions, we forecast funds from operations (FFO) to debt could materially breach 30% in 2020, and thereafter, should the company proceed with its planned Scarborough integrated project. On March 23, 2020, S&P Global Ratings placed its 'BBB+' ratings on Woodside on CreditWatch with negative implications. The CreditWatch placement indicates a high likelihood of a downgrade in the next month or so if
