The ratings of integrated European oil companies BP PLC (BP), Royal Dutch Shell PLC (RDSB.LN) and Eni SpA (E) could come under pressure because they plan to continue large dividend payouts despite the big drop in the price of oil, rating agency Standard & Poor's said Monday.
"In an era of low oil prices, such spending might limit their financial flexibility," said an article written by Robert McNatt, senior features editor for the agency, in the magazine Business Week.
These companies' U.S. counterparts - ExxonMobil Corp. (XOM), Chevron Corp. (CVX) and ConocoPhillips (COP) - will be under less pressure because their dividend is lower, McNatt said. Large Russian oil and gas producers OAO Gazprom (GAZP.RS) and Lukoil Holdings (LKOH.RS) could also encounter difficulty, he added.
"Standard & Poor's Ratings Services believes this global economic slump will be a time of stress for oil and gas producers - especially speculative grade exploration and production companies," McNatt said.