Chevron still has a lot of additional borrowing capacity before impacting the AA credit rating. A dividend cut means the CEO and CFO lose their jobs so there won't be one until the board decides to not allow additional borrowing. Watson, as Chairman of the Board, may even be able to push through new bond issuances to the point of a credit downgrade to 'A'. I don't expect a dividend cut in Q3. There will be substantially more cost-cutting (layoffs), borrowing and possibly suspended phase 4 projects before that step is taken. With that said, management and the board won't have a choice if prices stay around current levels for more than a year or so.
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Yes it was downgraded. Also there is no market to sale assets unless its a deep deep discount. Look at the Income Statement and Balance Sheet. They need Billions a month to cover expenses......With all of the MCP's not up they are fed. Bigfoot was at least a safety net for this year and they fed that up!
Ummm its been downgraded to AA-.
Someone needs to explore, produce and bring oil and gas to market. Chevron will continue to be a leading company to do this. We've been through bad times before and have emerged a strong company.
We'll be just fine