(August 31 – 11:45 ET) – DBRS is confirming its ratings on
Petro-Canada, its unsecured notes and debentures rate at “A”, and
its commercial paper is rated R1 (low).
DBRS says the ratings reflect PetroCan’s conservative balance sheet,
reasonable coverage ratios, and good cash flow. It is also well-
diversified in its exploration, production, refining and marketing
businesses. It is diversified between crude oil and natural gas and it
continues to improve its cost structure.
DBRS says the firm’s capital expenditures are expected to average
$1 billion annually over the medium term, which may hurt the balance
sheet. Although it is expected to maintain a good balance sheet relative
to the industry.
It says the firm also faces relatively low profitability, intense
downstream competition, and exposure to some big drilling projects.
-IE Staff
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