AUSTRALIA might be enjoying a resources boom but its oil and gas sector has been given a negative credit outlook for 2012 by ratings agency Fitch.
Fitch released a report on Thursday arguing local companies running major LNG projects were too saddled with debt.
It said it expected the free cash flow of Australian upstream gas companies to remain negative as they commit to new LNG projects and face significant challenges with regard to project execution.
It is the second time in seven months that Fitch has produced a negative report card for the gas sector, despite the fact soaring demand and a predicted `golden age' for LNG is expected to suit Australia with its massive reserves.
Australia currently is the world's second biggest exporter after Qatar.
It said it expected the free cash flow of Australian upstream gas companies to remain negative as they commit to new LNG projects and face significant challenges with regard to project execution.
It is the second time in seven months that Fitch has produced a negative report card for the gas sector, despite the fact soaring demand and a predicted `golden age' for LNG is expected to suit Australia with its massive reserves.
Australia currently is the world's second biggest exporter after Qatar.
Herald Sun
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