RPT-Correct: Fitch Revises Total's Outlook to Negative; Affirms at 'AA'

Mon May 19, 2014 4:34am EDT
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May 19 (Reuters) - (The following statement was released by the rating agency)

This announcement corrects the version published on 12 May 2014, clarifying that Total SA did not participate in the rating process.

Fitch Ratings-Moscow/London-12 May 2014: Fitch Ratings has revised the Outlook on Total SA's Long-term Issuer Default Rating (IDR) to Negative from Stable and affirmed the IDR at 'AA'. A full list of rating actions is at the end of this release.

The Negative Outlook reflects higher completion risks associated with Total's new upstream projects and the potential that funds from operations (FFO) adjusted net leverage may stay above 1.5x in the medium term. Total's production (excluding equity affiliates) declined in 2013 for the third year in a row amid increased capital intensity and moderately higher leverage. Total expects to boost its production by 2015, thanks to new projects scheduled to come on-stream in 2014-2015, as well as ramp-ups of already producing projects and reducing decline rates. For the Outlook to be revised back to Stable, Total will need to achieve its upstream production targets and demonstrate that its ambitious USD50bn (EUR37.5bn) capex allocated for 2013-2014 is starting to pay off.

Total is a leading global integrated oil and gas company with 2013 production of 1.55 million barrels of oil equivalent per day (mmbbl/d) (excluding equity affiliates) and strong positions in deepwater offshore and liquefied natural gas (LNG) production.


Falling Upstream Output   Continued...