Oil and gas project ratings in North America and EMEA could come under stress if oil prices were to stay below Fitch's base case price deck for a protracted period of time, according to a Fitch Ratings report.
Other potential ratings stressors include extreme events such as major technical failures or geopolitical turmoil, or if the credit quality of key project counterparties was to deteriorate.
Additional key issues affecting the Liquid Natural Gas (LNG) market include:
--The push in favor of increased contract flexibility and shorter terms, broadening of the offtakers spectrum.
--Prices at recent low levels driven by the drop in oil prices.
--Recent reversal in oil prices to slow momentum behind the development of new liquefaction capacity.
For more information, a special report titled "North America and EMEA Oil & Gas Projects - 2015 Sector Briefing" is available on the Fitch Ratings web site at www.fitchratings.com, or by clicking on the link.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Oil & Gas -- 2015 Sector Briefing
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=857788
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