Fitch: Woodside to negative

Fitch Ratings said it affirmed Woodside Petroleum Ltd.’s long-term foreign-currency issuer default rating and foreign-currency senior unsecured rating at BBB+.

The outlook also was revised to negative from stable.

Fitch also said it affirmed Woodside’s short-term issuer default rating at F2 and withdrew the rating.

The outlook revision reflects Woodside’s lower rating headroom under sustained low oil prices and weakness in the liquefied natural gas (LNG) markets, the agency explained.

Fitch said it forecasts Woodside’s credit metrics to remain weaker than those comfortable for the BBB+ ratings through 2017 and possibly 2018.

The agency said it believes oil prices will likely remain low for longer than previously expected with limited prospects for price recovery in 2016 and continued near-term volatility.

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