PGAS, PTBA, MEDC, BUMI, ENRG
Toni <[EMAIL PROTECTED]> wrote: Oil and gas industry's credit outlook
seen remaining strong - S&P
October 11, 2007: 01:56 AM EST
MUMBAI, Oct. 11, 2007 (Thomson Financial delivered by Newstex) -- Standard
& Poor's (NYSE:MHP) Ratings Services said the credit quality in the oil and gas
industry is likely to remain strong over the final quarter of 2007, aided by
strong crude oil prices and the generally strong credit profiles of rated
issuers.
The healthy cash flows resulting from crude's strength should provide for
continued high reinvestment in the exploration and production sector and, in
turn, filter down to the already strong backlogs in oilfield services, S&P said.
Because of the resulting solid credit quality, S&P expects that positive rating
actions will continue to outpace negative actions in the industry.
However concerns persists about natural gas prices are lagging crude oil
prices, reflecting the resource's more regional nature and the recent mild
weather patterns across North America, S&P said.
Also, refining and marketing operations, though currently operating in a tight
supply-and-demand market, are seeing some threat from moderating margins and
cash flows, and the high costs of facilities expansions, S&P said.
Copyright Thomson Financial News Limited 2007. All rights reserved.
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