Fitch revises Total to negative

Fitch Ratings said it revised the outlook on Total SA's long-term issuer default rating to negative from stable and affirmed the issuer default rating at AA.

The negative outlook reflects higher completion risks associated with Total's new upstream projects and the potential that funds from operations adjusted net leverage may stay above 1.5x in the medium term. Total's production (excluding equity affiliates) declined in 2013 for the third year in a row amid increased capital intensity and moderately higher leverage.

The company expects to boost its production by 2015, thanks to new projects scheduled to come on-stream in 2014-2015, as well as ramp-ups of already producing projects and reducing decline rates.

For the outlook to be revised back to stable, Total will need to achieve its upstream production targets and demonstrate that its ambitious $50 billion (€37.5 billion) capex allocated for 2013-2014 is starting to pay off.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.