Repsol: S&P cuts outlook to stable
(CercleFinance.com) - Ratings agency Standard & Poor's has lowered its outlook for the credit rating of Spanish oil group Repsol from "positive" to "stable" on Wednesday, expecting profit to fall this year due to the sharp drop of oil and gas prices.
S&P said the "stable" outlook reflects its view that the energy company will focus on reducing its net debt position to withstand the sector downturn and limit the effect of lower hydrocarbon prices.
The agency warned that it could lower its "BBB" rating by one notch if the group's "funds from operations (FFO) to debt" ratio were to fall closer to 30% on average.
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S&P said the "stable" outlook reflects its view that the energy company will focus on reducing its net debt position to withstand the sector downturn and limit the effect of lower hydrocarbon prices.
The agency warned that it could lower its "BBB" rating by one notch if the group's "funds from operations (FFO) to debt" ratio were to fall closer to 30% on average.
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