Outlook cut for Big Oil firms Cenovus and Husky

CALGARY – The picture is getting worse for six Canadian oil and gas companies, according to an influential ratings agency.

Standard and Poor’s says it has taken what it calls negative ratings actions on two big companies — Cenovus Energy and Husky Energy — along with four smaller ones.

Husky and Cenovus maintain their investment-grade ratings, but Cenovus’ rating has been lowered a notch and the outlook for Husky has been changed from stable to negative.

MORE: Complete coverage — plunging oil

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A lower credit rating can increase borrowing costs and could impact repayment of debt held by bondholders and other creditors.

Standard and Poor’s says the changes reflect the greater risk resulting from persistent weakness in oil and natural gas prices.

The agency has also singled out four so-called speculative Canadian energy firms: Harvest Operations, Jupiter Resources, Bellatrix Exploration and Lightstream Resources.

Harvest, Jupiter and Bellatrix have had their ratings lowered, while Lightstream’s outlook has changed from stable to negative.

MORE: Uh oh, new forecast says oil prices will stay lower for longer