Bloomberg.com: Shell Canada's Debt Downgraded by Standard & Poor's (Update1)
April 19 (Bloomberg) -- Shell Canada Ltd.'s debt ratings were cut by Standard & Poor's and may be downgraded further after revisions to oil and natural-gas reserves at parent company Royal Dutch/Shell Group.
Ratings of Calgary-based Shell Canada's long-term debt were cut to AA, the third-highest grade, from AA+, S&P said in a statement.
The downgrades, which affect about C$1.24 billion ($921.7 million) in borrowings, came after Europe's Royal Dutch/Shell announced its third cut to reserves this year and fired Chief Financial Officer Judith Boynton. S&P cut the group's debt rating from the highest investment grade.
The lowering of Royal Dutch/Shell Group's ratings automatically triggered the downgrade of Shell Canada, S&P credit analyst Michelle Dathorne said in a telephone interview. Royal Dutch/Shell owns 78 percent of Shell Canada.
Shares of Shell Canada rose C$1.20, or 1.9 percent to C$65.50 in Toronto Stock Exchange trading.
Shell Canada is Canada's fourth-largest oil company by sales, ranking behind Imperial Oil Ltd., EnCana Corp. and Petro- Canada.
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