U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Wall Street Analysts Weigh in on Latest NFP Data 
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms 
Urban studies: Doing research when every city is different 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Stock Futures Dip as Investors Await Key Payrolls Data 
Add as a preferred source on Google
The 12-month default rate forecast for Oil and Gas companies rated B2 or below in the Exploration and Production (E&P) sector is estimated to more than double in the year ahead, Moody's Investors Service said in a new report.
Moody's default-forecasting model estimates that the one-year portfolio-average baseline default rate for these companies will increase from 2.7% to 7.4%.
"With a gradual recovery in energy prices, the weaker oil & gas issuers are at a much greater risk of default," said Moody's Senior Vice President David Keisman. "The companies on the lower end of spec-grade ratings are the ones that should be most worried."
As of May 1, 2015, the oil and gas sector comprised 15% of companies rated B3 or lower -- the largest share for any sector included on this list of ratings across US corporate sectors, Moody's Associate Analyst Julia Chursin states in the report, "Oil and Gas: The Bad, Ugly and Good." The percentage is nearly double the 8% of oil and gas companies that occupied the list of US companies rated B3 negative or lower a year ago.
In contrast, the report also notes that, as of the end of April 2015, over 70% of US E&P companies rated B1 or below had maintained their ratings or had been upgraded since June 2014.
"The oil and gas industry is characterized by boom and bust cycles, and many US E&P companies with experienced management teams have seen this game before," said Senior Vice President Pete Speer. "While these companies have successfully navigated the waters thus far, low oil prices will continue to pressure the industry-at-large and these companies' credit metrics."
