Forbes.com: S&P says it may still cut Shell's debt rating

Reuters, 04.29.04, 12:02 PM ET

NEW YORK, April 29 (Reuters) - Standard & Poor's on Thursday said it may still cut its rating on Royal Dutch/Shell after the Anglo-Dutch oil group reported first-quarter financial results at the top range of expectations.

S&P said that although some of the quarter's news was positive, including a sharp reduction in debt to $11.7 billion from $18.2 billion, there were also negatives, such as an erosion in oil and gas production and a planned $14.5 billion to $15 billion capital spending program for 2004 and 2005.

Earlier this month, S&P cut its long-term rating on Shell to "AA-plus" from "AAA" and said it may cut the rating again after the company said it would trim reserve estimates for a third time and restate financial results.

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