As per reports, S&P Global Ratings has lowered credit ratings of top U.S. oil producers including Chevron Corp (CVX), Exxon Mobil Corp, and ConocoPhillips, slipping the ratings to ‘AA-,’ due to the rising risk from energy transition and volatile commodity prices.
The oil sector posted billions of dollars in losses in 2020 caused by the COVID-19 pandemic that brought global travel to a halt, affecting fuel demand and pushing crude prices to historic lows. The sector has been facing pressure from investors, asking companies to disclose their carbon footprint and reduce greenhouse gas emissions by spending on renewable energy projects.
Even though oil giants like Exxon, Chevron, and ConocoPhillips have announced steps to work for climate change.
Recently, the investors are also pressuring the companies to cut spending and focus on dividends and buybacks after the sector gathered massive debts to grow during shale oil’s golden era. S&P has a ‘stable’ outlook on Chevron, but ExxonMobil’s outlook is negative, implying that the agency could downgrade the ratings for its profile again.
Dow 30 component Chevron Corporation (CVX), through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. To learn more about Chevron (CVX) and to track their progress please visit the Vista Partners Chevron Page.
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