Moody’s: Relationship between sovereigns and national oil companies highlights risks and strengths

A multi-faceted relationship between national oil companies (NOCs) and sovereigns presents both risks and credit strengths, according to Moody’s Investors Service.

In a statement yesterday, Moody’s said NOCs with high debt levels and diminished financial capacity present the greatest contingent liability risks for sovereigns.

Meanwhile, the impact of sovereign support and influence on NOC ratings varies, it said.

In a report entitled Sovereigns & National Oil Companies — Relationship is a Source of Credit Strength and Risk for Both, Moody’s looked at the multiple aspects of the economic, financial and policy links between NOCs and sovereigns…

http://www.theedgemarkets.com/my/article/moodys-relationship-between-sovereigns-and-national-oil-companies-highlights-risks-and

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