The Strategist

Fitch affirms TotalEnergies and Shell ratings at "AA-"

12/08/2022 - 09:16

Fitch rating agency confirmed the "AA-" long-term issuer default ratings (IDR) of the Anglo-Dutch energy corporation Shell and the French oil and gas company TotalEnergies.

The outlooks for these firms' ratings are unchanged.

According to the rating agency, "TotalEnergies' ratings are supported by large-scale international activities, solid company diversity, and a stable financial profile."

Shell's grade was confirmed thanks to the company's extensive, highly diversified business model and extremely low leverage. Low reserves compared to competitors and hefty but reasonable dividends help mitigate this in part.

The agency anticipates that TotalEnergies will continue to post great financial results from 2022 to 2025 and Shell will continue to post strong results from 2022 to 2026.