Moody's publishes Asian oil & gas compendium on credit impact of lower oil prices

(Singapore, March 02, 2015) -- Moody's Investors Service has released a special edition of its compendium of Asian oil and gas research, following the collapse of crude oil prices in recent months. The compendium, covering both corporates and sovereigns in the region, is designed to enable investors to more easily access Moody's recent publications.

"The steep drop in crude oil prices since mid-2014 will materially reduce the earnings and cash flows of Asian oil & gas companies and weaken their credit metrics in 2015," says Vikas Halan, a Moody's Vice President and Senior Credit Officer.

"At the same time the low prices will benefit most Asia Pacific sovereigns, given the region's status as a net oil importer," adds Halan.

Moody's just-released Asian Oil & Gas Compendium, entitled "Credit Impact of Lower Oil Prices", brings together a suite of Moody's research that analyzes the credit impact of lower oil prices on both corporates and sovereigns in the Asia-Pacific region.

Crude prices more than halved between June 2014 and January 2015, reflecting higher-than-expected oil production in the US and lower demand in emerging markets.

At the same time, with the slowing growth in worldwide demand, oil markets will likely remain oversupplied in the next two years. The demand-supply imbalance may be exacerbated if China's economic growth slows sharply or if significant lifting of economic sanctions on Iran further increases oil volumes.

Moody's has lowered its price assumptions for Brent crude to $55/barrel through 2015 and $65/barrel in 2016.

Moody's Asian Oil & Gas Compendium includes the following research:
? Most Asian Oil & Gas Companies Remain Well-Positioned in Lower Oil Price Environment
? Credit Quality of Chinese National Oil Companies Resilient to Oil Price Decline
? Australian Non-Financial Corporates: Low Oil Price Will Lift Airline Profitability; Pressure Oil and Gas Producers
? Japanese Non-Financial Corporates: Shipping Companies to See Profitability Boost from Weak Oil Prices; Oil and Gas Sector's Profits Will Be Pressured
? Asia Pacific Sovereigns: Credit Impact of Lower Oil Prices
? Malaysia's Revised Budget Leaves Sovereign's FIscal Consolidation Trend Intact
? Australia: Lower Oil Prices Will Have Limited Impact on Sovereign and Sub-sovereign Credit Profiles. (ends)