DBRS rates Shell AA(low)

DBRS said it assigned AA(low) issuer ratings to Shell plc and its subsidiary Shell International Finance BV. The trend is stable.

“The AA (low) credit ratings reflect Shell’s large size, well-diversified operations, global presence in key markets, and substantive market position in downstream operations. The company also benefits from relatively low leverage and solid financial metrics as demonstrated by DBRS Morningstar-adjusted net debt-to-cash flow of approximately 0.7 times (x), DBRS Morningstar-adjusted net debt-to-capital of about 20%, and DBRS Morningstar-adjusted EBIT-to-interest of circa 17x, all as at the year ended Dec. 31, 2022 (F2022).

“The credit ratings also consider the high level of shareholder distributions expected to be made by the Company throughout the medium term, as well as DBRS Morningstar’s assessment of Shell’s relatively shorter proved reserve life index when compared with other large industry peers,” the agency said in a press release.

Additionally, DBRS said it expects Shell to maintain its financial metrics for at least the next 12 months.

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