ExxonMobil: stock up, even on Moody's downgrade

(CercleFinance.com) - Moody's has downgraded ExxonMobil's rating on Wednesday, now adopting "Aa2," against "Aa1" previously, with an outlook that it has now set at "stable".


In a statement, the rating agency is worried about the oil giant's increasing debt and the deterioration of its financial indicators against the backdrop of the coronavirus crisis, a process that it believes will continue over the next few years.

Moody's notes that Exxon is opting for a reduction in its debt by reducing its capex, while choosing to maintain the payment of a large dividend, with the agency believing that progress in terms of deleveraging could be "slow".

Despite these unfavourable comments, the ExxonMobil share is up about 3% this Wednesday morning on Wall Street, supported by upbeat crude oil prices (Brent is up about 5%).


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