Headwinds build against Nexen

Ratings slip on Long Lake troubles; Nexen pins hopes on debt reduction and BC shale gas

ANY LIST of the global petroleum industry’s hot spots would likely include Yemen, the Gulf of Mexico, Alberta’s oil sands and Nigeria – all of which underpin the hopes of Canadian independent Nexen. But while resolute in its confidence that those diverse operating regions will find ways through their present troubles, Nexen faces a fresh and disturbing problem. US bond rating agency Moody’s Investors Service has put the company’s BAA 3 credit rating under review, which could affect its ability to finance continuing operations. Terry Marshall, a Moody’s senior analyst, says there’s a high probability that the rating will be downgraded to “speculative” when the review finishes around mid-March