Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Shell Petroleum NV > News item |
S&P: Royal Dutch Shell on watch
Standard & Poor’s said it placed the AA long-term and A-1+ short-term corporate credit ratings on Royal Dutch Shell plc on CreditWatch with negative implications.
The agency also said it placed on CreditWatch with negative implications the ratings on various other Shell entities, including Solen Versicherungen AG, Shell Oil Co., Shell Petroleum NV and Shell Petroleum Co. Ltd.
The agency also said it placed the A- long-term rating on BG Energy Holdings Ltd., the subsidiary of BG Group plc, on CreditWatch developing.
S&P also said it placed the BG’s A-2 short-term corporate rating on CreditWatch positive.
Royal Dutch Shell announced a recommended cash and share offer of about £47 billion for the entire share capital of BG Group, the agency said.
The CreditWatch placement on Shell reflects a view that overall credit quality could deteriorate materially if the proposed acquisition completes as announce, S&P said.
The acquisition could further strengthen Shell’s position in the global liquefied natural gas business, where it is already a leader, the agency said.
The deal also could increase production by 20% and reserves by 25%, especially in Brazil, S&P said.
But, the agency said it does see the short-term increase in financial risk as more material for the ratings.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.