S&P Downgraded the Rating Outlook of Oil Companies
Standard & Poor’s downgraded rating outlook of the largest companies in the oil industry.
S&P downgraded the rating outlook of oil companies. The international credit rating agency announced that it turned the rating outlook of the largest oil companies around the world to a negative, on the grounds that the oil industry is at risk due to changes in the climate.
Among the companies that S&P, the international credit rating agency, turned the rating outlook to negative are Exxon Mobil Corp, Chevron Corp, Royal Dutch Shell Plc., BP Plc. and Total SE.
Stating that the companies operating in the oil industry are faced with “difficulties and uncertainties arising from the transformation in the energy sector”, the organization stated that “it puts pressure on profitability, especially on return on capital”.
It is thought that the decision made by the organization in this direction will affect the credit markets and stocks by increasing the concerns over the oil industry.