Oil majors face credit downgrades amid rising investor pressure
S&P has placed 13 IOCs, including ExxonMobil and Shell, on negative watch, while investment giant BlackRock warns of ‘tectonic shift’
Pressure on the oil and gas sector is rapidly accelerating as investors look to ditch companies that will not be sustainable businesses over the course of the energy transition—with two major financial institutions singling out the sector. Yesterday, 13 of the world’s largest fossil fuel companies were told their credit ratings could be downgraded within just a few weeks due to the growing risks to their businesses from the energy transition, oil price volatility and weaker profitability. US credit ratings agency S&P Global Ratings placed the companies—including ExxonMobil, Total, Chevron and Shell—on ‘credit watch’ while it consider downgrades. Credit ratings—which assess the credit ris
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