12 July 2016
Shell’s credit rating has been cut by S&P because of its £35bn takeover of rival BG Group.
The rating agency said on Tuesday evening it would cut the international oil company from A+ to A.
S&P said in a statement:
The downgrade reflects our view that, despite management’s commitment to reduce debt after the $54 billion acquisition of BG Group, Shell’s credit metrics and discretionary cash flow will remain materially below levels commensurate with the previous ‘A+’ rating in 2016 and 2017, as we expect continuing low oil and gas prices.
Earlier this year, Fitch reduced its credit rating for Shell from AA to AA-.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.