Exxon Mobile Credit Rating Gets Cut Amid Virus-Led Hit to Energy

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© Reuters. © Reuters.

By Yasin Ebrahim 

Investing – Exxon Mobile continued its selloff on Monday after its credit worthiness took a hit following a downgrade from rating agency S&P.

Exxon Mobil (NYSE:) was down more than 7%.

S&P cuts its rating on Exxon Mobile’s debt to AA from AA+, and maintained its negative outlook, indicating another cut could come soon.

The cut comes as the Wall Street continues to grow bearish on energy companies amid a plunge in energy prices due to Covid-19 outbreak.

RBC downgraded Exxon to underperform from sector perform and cut its price target on the stock to $40 from $55.

“Our cash flow estimates for XOM are 30% lower in 2020 and 22% lower in 2021,” RBC said.

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