Standard & Poor’s Ratings downgraded Exxon Mobil’s triple-A credit rating that the oil giant has held since 1930, citing low oil prices and high debt for the move.
“The company’s debt level has more than doubled in recent years, reflecting high capital spending on major projects in a high commodity price environment and dividends and share repurchases that substantially exceeded internally generated cash flow,” Standards & Poor’s said in a memo.
Exxon is largest publicly traded oil company in the world and has enjoyed a triple-A rating for more than six decades.
The company said the downgrade to AA+ it wouldn’t harm how it does business or interfere with raising capital.
“Nothing has changed in terms of the company’s financial philosophy or prudent management of its balance sheet,” Exxon spokesman Scott Silvestri said.
“Exxon Mobil places a high value on its strong credit position and continues to be focused on creating long-term shareholder value despite near-term market volatility.”
The price of crude oil has plunged from $110 a barrel in June 2014 to about $40 a barrel now.
