LONDON, March 10 (Reuters) - Rating agency S&P Global
slashed its average Brent oil price assumption for the year to
$40 per barrel on Tuesday and warned that some junk-rated oil
and gas firms could face multi-notch downgrades to their credit
scores.
S&P had previously expected Brent to average $60 this year
$60 previously. It also cut its forecasts for next year to $50
from $55 and its Henry Hub gas price assumptions for this year
to $2 per million British Thermal Units from $2.25 previously.
"It's likely rating actions (for oil and gas production
companies) in the investment-grade category could be more severe
than during the last cycle," S&P said, adding that it would
review all its exploration and production and oilfield services
ratings over the next several weeks.
"For the high-yield segment, in particular, issuers without
hedges, those who face upcoming maturities, and are somewhat
squeezed on borrowing-base revolving credit facilities will most
likely face multiple notch downgrades," it added.