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AFX Europe (Focus): Royal Dutch/Shell 'Aa1' long-term rating affirmed, outlook negative - Moody's: “The move follows last week's cut in the oil giant's long-term rating to AA from AA+ by Standard & Poor's on concerns over the company's poor reserves replacement position.” (ShellNews.net) 8 Feb 05

 

LONDON (AFX) - Moody's Investors Services has affirmed its 'Aa1' long-term debt rating on Royal Dutch/Shell Group, with a negative outlook.

 

The move follows last week's cut in the oil giant's long-term rating to AA from AA+ by Standard & Poor's on concerns over the company's poor reserves replacement position.

 

Shell last week announced record full year earnings, but said it was cutting an additional 1.4 bln barrel-of-oil equivalent reserves (BOEs) against its year-end 2003 proved reserves, and said reserve replacement results in 2004 were poor.

 

"The most recent de-booking of 1.4 bln BOEs significantly exceeds the 900 mln BOE reserves indicated to be at risk in October 2004, when the audit was about 55 pct complete," Moody's said.

 

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