Inside Credit: Fitch Revises Its Oil and Gas Price Assumptions

NEW YORK--(BUSINESS WIRE)-- The latest edition of Inside Credit features Fitch Ratings' revised oil and gas price assumptions. Increasing efficiencies and price pressure related to the U.S. shale boom support Fitch's lower corporate forecast assumptions for long-term WTI and Henry Hub natural gas prices.

Fitch's price deck now assumes long-term WTI prices at $70/bbl, down from $75/bbl, supported by a drop in median full cycle costs. However, long-term Brent price remains at $80/bbl.

'The benefits of the shale revolution that we've seen in the U.S.--lower completion costs, longer laterals and more efficient well designs--have been difficult to replicate elsewhere, leading us to increase the spread between Brent and WTI,' says Mark Sadeghian, Senior Director.

Fitch's price assumptions for Henry Hub natural gas price were revised down to $3.75/mcf, reflecting increasingly efficient U.S. shale production, and tepid demand relative to the boost in supply.

Other topics covered in this week's edition of Inside Credit include:

-M&A Pace Increases Risk of U.S. Companies Overleveraging

-Greece IMF Bundling Highlights Extreme Liquidity Pressure

-Saudi Sovereign Borrowing Could Spur Corporate Sukuk

-Deutsche Bank's CEO Change Highlights Strategy Challenge

-Limited Upside, Potential Downside from HSBC's Pivot

-UK Bank Ring-Fence; More Flexible, Group Limits Unclear

-Turkey Election Heightens Political, Policy Uncertainty

-Public Power Riding U.S. Economic Recovery and Low Rates

-Video: Shifting Landscapes of European Structured Finance

-Teleconference Replay: PPP Counterparty Obligations Exposure Draft

-Global Banking Conference Stops in Hong Kong and Singapore - June 17 and 19

'Inside Credit' is a weekly snapshot of Fitch Ratings' noteworthy content, selected from all sectors and regions. To receive the weekly edition, distributed every Friday at 8am ET, please sign up here:

http://pages.fitchemail.fitchratings.com/InsideCreditSignUp/

Additional information is available on www.fitchratings.com

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150612005337/en/

Fitch Ratings
Media Relations
Alyssa Castelli, +1-212-908-0540
New York
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Infosys and Metsä Group Expand Strategic Collaboration to Drive AI-led IT Transformation
• Reckitt Announces Any and All Tender Offer and Consent Solicitation for Mead Johnson Nutrition Company Notes due 2044
• Dimensional Fund Advisors Ltd. : Form 8.3 - PROLOGIS INC - Ordinary Shares