04-26-2016, 11:20 AM
Exxon Mobil (XOM +0.2%) loses the AAA credit rating from Standard & Poor's it held since the 1930s, as the ratings agency downgrades XOM to AA+ and says the company’s greatest business challenge is replacing its ongoing production.
"We believe Exxon Mobil's credit measures will be weak for our expectations for a 'AAA' rating due, in part, to low commodity prices, high reinvestment requirements, and large dividend payments," S&P says.S&P maintains a stable outlook on XOM but says the company's debt level had more than doubled in recent years, reflecting high capital spending and dividends as well as share repurchases that substantially exceeded internal cash flow.
"We believe Exxon Mobil's credit measures will be weak for our expectations for a 'AAA' rating due, in part, to low commodity prices, high reinvestment requirements, and large dividend payments," S&P says.S&P maintains a stable outlook on XOM but says the company's debt level had more than doubled in recent years, reflecting high capital spending and dividends as well as share repurchases that substantially exceeded internal cash flow.