For The First Time Since The Great Depression, Exxon Mobil Loses 'AAA' Rating

zero hedge ^ | 4/26/16 | tyler durden

[Nachum]

Exxon Mobil has been rate AAA by S&P since 1930 according to Bloomberg. Today that ended as the global crude explorer with sales that dwarf the economies of most nations was cut to AA+ (Outlook stable). Having been put on notice in February (negative watch), citing concern that credit measures would remain weak through 2018.

Credit measures will be weak for a AAA rating due, in part, to low commodity prices, high reinvestment requirements and large dividend payments, S&P says.

 

Maintaining production and replacing reserves will eventually require higher spending, S&P says.

 

Greatest business challenge is replacing co.’s ongoing production, S&P says.

XOM stock is sliding and weighing on The Dow (back below 18,000).

As Bloomberg reports,

[Nachum]

Obamanomics

[Nachum]

The list, Ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/

[lightman]

No tears for that one.

[ChinaGotTheGoodsOnClinton]

Varney and Company speculates that his is because Exxon is supporting climate change research that questions the 100% consensus view that all scientists agree with.

[familyop]

The next generally upward trend for oil prices will be more permanent. The dollar must go down. The dollar is too unnaturally, internationally high to support much manufacturing production on U.S. soil and product exports from the U.S.A.

[Nachum]

I don’t agree that oil will permanently go up. We have a global glut. If the price went up, fracking would come back. No, there is no shortage of oil.

I agree that we have no manufacturing base, but that will not be improved by interest rates, but by the removal of those who hamper it.

[Texas resident]

baraq and his fellow travelers are behind this downgrade.
Chevron is in much worse financial shape than EM.

Chicago politics

[Tolerance Sucks Rocks]

So Varney is saying that S&P downgraded them because they are — GASP! — climate change contrarians?

[redgolum]

A heck of a bell weather.

Commodities used to be the last safe harbor. Now, the cycle returns.

Get ready for more fun!

[Buckeye McFrog]

They left out “political pressure on the ratings agency from Global Warming Nazis”.

[Resolute Conservative]

They are not worried they are cash flush.

[chuckee]

I was surprised to learn that now with Big oil Exxon no longer triple AAA there are only 2 American corps left with a AAA rating. Big medicine chest Johnson and Johnson and Big software Microsoft

[familyop]

"I don’t agree that oil will permanently go up. We have a global glut. If the price went up, fracking would come back. No, there is no shortage of oil."

50% Of Proved Oil Reserves May Have Just Vanished
http://oilprice.com/Latest-Energy-News/World-News/50-Of-Proved-Oil-Reserves-May-Have-Just-Vanished.html

Demand in developing countries continues to increase despite the propaganda targeting lower echelon investors. Known reserves would last about 22 years at current rates, but oil will becoming increasingly slower and more expensive to produce. It's no wonder that the remaining, inflating producers are putting so much funding and effort into alternatives (e.g. automotive).

The government-paid, socialist, multi-partisan, NIMBY political class doesn't care. Keeping the velocity of recirculating debt as high as possible, it will take what it can rob through libels from the renting, impoverished multitudes of the former private sector today.

The default process is obscured by sponsored speech and schemes of the nonproductive debt regime, but the default process is still in motion.

http://www.usdebtclock.org/

Even legalized corruption will not save the debt regime. Every pogrom against the many who are not part of the socialist political class will only accelerate the process, may the houses of the debt-sucking, anti-technical NIMBYs rot.

http://www.usdebtclock.org/state-debt-clocks/state-of-colorado-debt-clock.html

[familyop]

Correction:

...oil will become increasingly slower and more expensive to produce.