Royal Dutch Shell Group .com

Globe& Shell Canada's debt ratings cut


Bloomberg News

Tuesday, April 27, 2004


CALGARY -- Shell Canada Ltd.'s debt ratings have been cut by Standard & Poor's Corp. 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 double-A, the third-highest grade, from double-A (plus), S&P said.


The downgrades, which affect about $1.24-billion 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 said. Royal Dutch/Shell owns 78 per cent of Shell Canada.


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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