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S&P expects Petronas to remain resilient
But the ratings agency says Asia-Pac oil-and-gas players may be downgraded if oil prices continue to languish
Published Mon, Jan 26, 2015 · 09:50 PM
Kuala Lumpur
STANDARD & Poor's (S&P) has warned of downgrades to the ratings of Asia-Pacific oil and gas players such as Malaysia's Petronas, should oil prices take a longer-than-expected time to recover and the companies fail to react to the changing environment.
The financial flexibility of some players has already been greatly reduced, said the global ratings agency, which anticipates a rebound in oil prices from 2016. It expects Brent crude to average at US$65 a barrel in 2016 - US$10 more than in this year - and to rise to US$80 in 2017 and beyond.
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