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Comparing Integrated Energy Firms’ Credit Ratings

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Integrated energy firms’ credit ratings

In this part, we’ll look at Standard & Poor’s (or S&P) credit rating for the leading integrated energy firms—ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP).

The table above shows that ExxonMobil (XOM) has the highest long-term credit rating of AA+ with a stable outlook, which means that the rating is not likely to change. Until April 26, 2016, ExxonMobil had held a AAA rating for more than 15 years before the recent drop in energy prices took a toll on the company’s rating. 

Next in line is Chevron’s (CVX) AA- credit rating with a negative outlook. This rating was affirmed in 3Q16. The negative outlook implies that the rating could drop. Shell and BP have lower ratings than CVX, but they have a stable outlook as assigned by S&P.

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