Various Rating Actions Taken On European Oil And Gas Majors On Lower Oil Price Environment

The dramatic deterioration in the oil price outlook has led us to take a number of rating actions on European oil and gas majors. We forecast still more negative free cash flow in 2015 extending possibly into 2016, given fairly inflexible capital expenditure and high dividends, resulting in credit measures below our rating category thresholds. Compared with December 2008, debt for Europe's majors has increased 50%, pointing to reduced flexibility. We have revised to negative our outlooks on three oil majors, while affirming the credit ratings on these companies to reflect that we will further evaluate management's actions in reducing negative free cash flow by cutting costs and gradually reducing capital expenditures (capex). We have placed the ratings on two

...+ The dramatic deterioration in the oil price outlook has led us to take a number of rating actions on European oil and gas majors. + We forecast still more negative free cash flow in 2015 extending possibly into 2016, given fairly inflexible capital expenditure and high dividends, resulting in credit measures below our rating category thresholds. + Compared with December 2008, debt for Europe's majors has increased 50%, pointing to reduced flexibility. + We have revised to negative our outlooks on three oil majors, while affirming the credit ratings on these companies to reflect that we will further evaluate management's actions in reducing negative free cash flow by cutting costs and gradually reducing capital expenditures (capex). + We have placed the ratings on two oil and gas companies on CreditWatch negative. LONDON (Standard & Poor's) Dec. 22, 2014--Standard & Poor's Ratings Services today announced the following rating actions on Europe's oil majors. We have + Affirmed the '##/A-1+'...

Ratings Action