Skip to main content
  • Register
  • Help
  • Contact us

S&P downgrades Shell's long-term debt on risks from energy transition

Fri 19 February 2021 11:58 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - One of the world's top credit rating agencies downgraded Royal Dutch Shell's long-term debt on the back of the expected challenges from the transition to sustainable technologies.

S&P Global Ratings lowered its rating for Shell's long-term debt from AA- to A+.

Nevertheless, S&P did remove them from CreditWatch and said that the outlook for the rating was 'stable'.

The downgrade followed S&P's recent decision to revise its risk assessment for the broader oil and gas industry from intermediate to moderately high.

It cited the increasing risks from the energy transition, the weak profitability of firms in the sector and the greater volatility in oil and gas prices as the reasons for the move.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.


    More company news from ShareCast