22 Jan 2016
S&P may cut oil countries' ratings to reflect "new reality" - Reuters
FXStreet (Mumbai) - As per Reuters, credit rating agency Standard & Poor's (S&P) signalled on Friday that oil-exporting countries face fresh downgrades as crude prices fall further and that it could repeat last year's move when it made a big group of cuts all at once.
A further 20% slump in oil prices since the start of the year which few had foreseen could mean another batch of cuts is imminent, S&P's EMEA head of sovereign ratings Moritz Kraemer noted.
Kraemer said, "The last leg down (in oil) has been pretty significant. So what we have to do is, if you remember last year we brought some reviews forward, quite a number actually, we have to decide whether we do that again. We come to that decision by looking at the new reality."
A further 20% slump in oil prices since the start of the year which few had foreseen could mean another batch of cuts is imminent, S&P's EMEA head of sovereign ratings Moritz Kraemer noted.
Kraemer said, "The last leg down (in oil) has been pretty significant. So what we have to do is, if you remember last year we brought some reviews forward, quite a number actually, we have to decide whether we do that again. We come to that decision by looking at the new reality."