Santos Limited
(ASX:STO) says it is very disappointed by a decision from ratings agency Standard and Poor’s to reclassify the company’s hybrid instrument as debt.
S&P previously classified Santos’ €100 billion hybrid as equity but has now reclassified it as debt, meaning Santos’ BBB+ credit rating has been placed on Credit Watch with negative implications.
The oil and gas producing company advises there has been no change to Santos’ financial position, nor will there be a need for further equity or debt facilities as a result of S&P’s announcement.
Santos has however revealed it is considering capital management initiatives later in the year ahead of its PNG LNG Project generating significant cash in 2014.
Santos posted a net profit of $518 million in the full 2012 calendar year.
