NEW YORK--(BUSINESS WIRE)--Fitch Ratings has published the special report North American E&P Ratings and Market Spreads, a publication that identifies trends and makes observations regarding the market's assessment of North American exploration and production (E&P) credit risk.
Trends and observations discussed in the report include:
--Market premium placed on E&P credit relative to similarly rated peers in the 'BB' category and higher;
--Relative credit risk, based on ratings, among E&P companies are generally consistent with market views;
--Leverage, on a cash flow basis, is priced similarly across E&P companies;
--Market spreads correlate to key E&P credit factors (e.g., debt-to-proved reserves).
Fitch concludes that, while spreads have compressed from historical levels, the market has generally assessed relative credit risk consistent with credit ratings.
The special report 'North American E&P Ratings and Market Spreads' is available on Fitch's website at www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Relevant Research:
--Corporate Rating Methodology Including Short-Term Ratings and Parent and Subsidiary Linkage (May 28, 2014);
--Updating Fitch's Oil and Natural Gas Price Deck (Aug. 8, 2014);
--Full Cycle Costs for North America E&P (July 30, 2014);
--Cash Flow Trends in the U.S. Energy Sector (Shareholder Activism Having an Impact) (Feb. 4, 2014);
--Investor FAQs--Recent Questions on the E&P, Refining, and Drilling and Services Sectors (Aug. 12, 2013).
Applicable Criteria and Related Research: North American E&P Ratings and Market Spreads (Market Trends and Observations)
Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage
Updating Fitch's Oil & Gas Price Deck
Full Cycle Costs for North America E&P (Production Costs Moderate in 2013)
Cash Flow Trends in the U.S. Energy Sector (Shareholder Activism Having an Impact)
Investor FAQs: Recent Questions on the E&P, Refining, and Drilling and Services Sectors