S&P lowers Exxon to negative

S&P said it affirmed the AA+ long-term corporate credit and unsecured debt ratings on Exxon Mobil Corp. and revised the outlook to negative from stable.

The agency also said it affirmed the company's A-1+ short-term credit and commercial-paper ratings.

The outlook revision reflects the revised cash flow projections for 2017 through 2019, which result in higher than previously expected leverage during the forecast period, S&P said.

Key changes to the operating cash flow estimates include wider negative pricing differentials, higher cash operating costs and lower dividends from equity affiliates, the agency said.

Although ExxonMobil significantly reduced capital spending in 2015 and 2016 in response to lower commodity prices, it continued to grow dividends, leading to large discretionary cash flow deficits and an uptick in debt, S&P said.

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