Moody's Investors Service, one of the big three credit ratings agencies, has put some of the biggest oil and mining companies in the world on what it calls a "downgrade review" as the oil price remains at multi-year lows.
Moody's issued the warning after slashing its oil price estimates for 2016 by $10 to $33 per barrel. The agency also said they do not expect the per barrel price of oil to increase more than $5 in 2017-18. Decreasing oil demand in China and India, combined with high Middle Eastern production - including the rise in Iranian oil exports - are major factors, said Moody's’ senior vice-president, Terry Marshall.
The rating agency said it expects the mix of the low prices, oversupply and weak demand to "significantly stress the credit profiles" of companies in the sector. Companies on the list include Shell who announced intends to lay off 10,000 direct and contractor employees and exit Alaska exploration..
Source: Business Insider