What A Carbon-Constrained Future could mean for Oil Companies’ Creditworthiness

Standard & Poor’s Rating ServiceFinancial models that use past performance and creditworthiness may be insufficient to guide investors on the effects of future carbon constraints on the oil sector. Smaller independent, oil and gas producers should see deterioration in their financial risk profiles to a degree that could lead to negative outlook revisions and then down grades over 2014 – 2017 and majors could face pressure in 2016-2017.

By: Standard & Poor’s Rating Service
Date: March 1, 2013