“Exxon Mobil Corp. was demoted from the top credit rating by Standard & Poor’s for the first time since the Great Depression as the collapse of the biggest oil-market rally in history strangled cash flows.”
“The company’s debt level has more than doubled in recent years, reflecting high capital spending on major projects in a high commodity price environment and dividends and share repurchases that substantially exceeded internally generated cash flow,” Standard & Poor’s wrote in the note.”
From Fuel Fix (http://fuelfix.com/blog/2016/04/26/exxon-mobil-loses-top-credit-rating/) which is the Houston Chronicle’s blog…
I remember reading a report in the 90’s that showed relationships of oil companies balance sheets, correlations of energy price changes to revenues and amount of hedging done… Exxon had the top rated balance sheet, the lowest correlation of prices to revenues and did zero hedging…
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