Thursday, November 23, 2017

Fitch: Venezuela Risk Already Factored into European Oil Ratings


Venezuela’s financial and political problems should not affect the credit ratings of any European oil and gas companies operating in the country, Fitch Ratings says. Repsol, Eni, Total and Shell all have exposure to Venezuela, mainly via joint ventures. Cash flows from Venezuelan operations should be received via dividends from these joint ventures, but the situation in the country means our ratings already assume that no dividends will be received over the rating horizon. Recovering the capex spent in the past few years may also not be possible in the medium term. More…

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