CORPORATESISSUER COMMENT 5 AUGUST 2015EXXON MOBIL CORPORATION (XOM)Moodys Senior Unsecured Rating AaaMoodys Outlook STABond-Implied Rating Aa2CDS-Implied Rating Aa3EDF-Implied Rating Aa1As of 8/03/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewExxon Mobil: Market-Implied Ratings All Move Lower Reflecting the recent softness in oil prices, the EDF', CDS-, and bond-implied ratings for Exxon worsened over the last 90 days (Figure 1).FIGURE 1. EXXON: MOODYS AND MARKET-IMPLIED RATINGS, LAST THREE MONTHS (DAILY DATA)We do not believe that these declines imply a significant diminishment of Exxons creditworthiness. On the contrary, ExxonMobils unique, highly-rated credit status has dampened the impact on the company of the global drop in oil prices. Exxon has reaffirmed its flexibility by indicating it will defer expansion in some areas and reduce exposures to its businesses with the weakest profit margins, while at the same time boosting output by 2017. It is the only integrated oil company rated Aaa among a group of highly rated peersMOODY'S ANALYTICS CORPORATES2 5 AUGUST 2015 MARKET SIGNALS REVIEW : EXXON MOBIL: MARKET-IMPLIED RATINGS ALL MOVE LOWER(Chevron, Royal Dutch Shell, and Total), and one of only three Aaa industrial companies (see Moody's Ratings View below).Over the last three months, the CDS-implied rating for Exxon dropped two notches to Aa3, from Aa1. The bond-implied rating is Aa2, one notch down. Exxons EDF-implied rating declined from Aaa to Aa1. The previous time the EDF-implied rating slipped below Aaa was in September 2012.On July 31 Exxon announced that Q2 net income fell to $4.19 billion, or $1 per share, from $8.78 billion, or $2.05, a year earlier. The per-share result was 1...
