Credit rating organization Standard & Poor released a report on Canada’s Oil Sands today.
They say in order for oil and gas companies to remain in good credit, they need to watch the balance sheet.
Most companies have reportedly cut back on capital spending this year. Some have culled desk-job staff, others have reduced stock holder dividends.
Standard & Poor mentions that many in the industry are going as far as reducing their dividends to save their credit rating. Many business are doing all of the above to stay in good terms with their creditors.
Regardless, it’s only a temporary measure they warn, saying that “persistently low, or even lower oil prices could end up causing a lot of trouble for companies whose margins are still tight.”
