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US Oil Majors Downgraded by S&P on Climate Risk, Earnings

February 12, 2021

Exxon Mobil Corp., Chevron Corp. and ConocoPhillips had their credit ratings lowered after S&P Global Ratings followed through on its recent warning and revised the industry’s risk profile due to climate change and weak earnings.

The oil and gas producers’ ratings were cut one notch, S&P said in separate statements, and comes two weeks after the ratings company published a sector-wide report on the challenges posed by climate change.

The ratings decisions reflect “growing risks from energy transition due to climate change and carbon/GHG emissions, weak industry profitability and greater expected volatility in hydrocarbon fundamentals,” S&P said Feb. 11.

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