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 royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, and shellwikipedia.com, are owned by John Donovan - more information here. There is also a Wikipedia segment, the Shell DPA Files, "Shell and the Spies", the Shell Leaks files, as well as books written and published by John Donovan - Kindle eBooks. Timeline of the Donovan Shell Feud. Toxic History of Royal Dutch Shell Group. Shell and the Donovans: The Full Media Record — 550+ Articles, 110 Books, 40 Years. *All created and supported by internet wizz, Nick Gill.
