The following lists rank the global portfolio of oil refining and marketing companies that S&P Global Ratings rates, from strongest to weakest. We rank companies, in turn, by the rating, outlook, stand-alone credit profile (SACP), business and financial risk profile, and liquidity assessment. We rank investment-grade companies by business risk profile, then financial risk profile. We order speculative-grade companies by financial risk profile, then business risk profile. We then list companies in alphabetical order, if not distinguished by these factors. We exclude integrated oil and gas companies, since their upstream (exploration and production) divisions typically generate a larger proportion of group cash flow, even if they also own some of the largest downstream assets. Similarly, we exclude marketing and retail businesses with no refining assets.

In line with our corporate rating methodology, the final rating may differ from the SACP, where group, government, or rating above the sovereign considerations apply. Where the SACP differs from the anchor, as it does for about 63% of the ratings, we have applied one or more modifiers, which may include that for liquidity. We have noted the anchor and active modifiers of each company, for informational purposes only. For our more detailed analysis, please refer to the company-specific pages on RatingsDirect.

As we show in chart 3, most of our business risk assessments are closely correlated with the corresponding competitive positions. Similarly, given our moderately high industry risk assessments for the oil refining and marketing sector, country risk has no further material impact on the corporate industry and country risk assessment as the rated companies are based in jurisdictions where we assess country risk as moderately high and lower. Government or group ownership is an explicit rating factor for about 43% of the companies. In almost all cases, our analysis of this ownership results in a rating higher than the SACP.

For our sector outlooks and analysis, as well as ranking lists for other subsectors of the oil and gas industry, please refer to the commentaries listed under Related Research.

Table 1

Table 2

The table and charts in this publication provide an overview of the 23 entities we rate in this industry. We rate 13 entities as investment-grade ('BBB-' and above) and 10 entities as speculative-grade ('BB+' and below).

Chart 1

Across the corporate universe, about 60% of our ratings are speculative-grade. Ratings below 'BB+' in oil refining and marketing account for approximately 43%. This smaller share for an intrinsically risky industry in part reflects government and group support, since almost half of the investment-grade ratings have speculative-grade SACPs.

Chart 2

Presently, our outlooks on the ratings within the sector are mostly stable. Credit quality has improved with above-average refining margins, strong balance sheets, and ample liquidity. Companies will likely continue to focus on returning cash to shareholders. Given the broadly supportive market fundamentals, operating efficiencies, and financial liquidity and balance sheet cushions, many of our ratings have some headroom, supporting our outlooks. Our ratings are underpinned by our base-case assumptions, but also generally factor in some headroom for short-term volatility and longer-term cyclicality of prices and margins. This is particularly true when prevailing margins and our assumptions are relatively strong or high by historical standards. 

As chart 3 shows, our business risk profile assessments (a combination of country risk, industry risk and entity-specific competitive position) typically mirror our view of competitive position in this sector. Where they diverge, it is usually because we see the industry risk as a constraint for the business risk.

Chart 3

Chart 4

The most common financial risk profile assessment in this sector is significant (see chart 4). After several years of at least supportive refining margins, our financial risk assessments, whether we assesses as highly leveraged or better, typically reflect both the underlying metrics and some leeway to accommodate moderately higher leverage in a cyclical downturn.

Chart 5

Chart 6

As chart 5 shows, we consider most oil refining companies to have liquidity that is adequate or better. This is important because pricing and volumes for refining (and hence working capital funding) are sometimes unpredictable and volatile. Typically, the amount of cash refining companies maintain, combined with their cash generation and liquidity resources, will cover the uses of cash to which they have committed over the next 12 months by 1.2x or more.

The ratings and scores in this document are as of April 1, 2024, and we will not keep it updated. To keep it concise, the list only discloses scores for the main rated entity of larger corporate groups. We may omit certain entities, such as subsidiaries or holding companies, where the ratings are linked to those on their parent companies. We also omit preliminary ratings, typically those that are contingent on a capital markets transaction. 

Related Criteria

• Criteria | Corporates | General: Methodology: Management And Governance Credit Factors For Corporate Entities, Jan. 7, 2024
• Criteria | Corporates | General: Corporate Methodology, Jan. 7, 2024
• Rating Government Rating Government-Related Entities: Methodology And Assumptions, March 25, 2015
• Key Credit Factors For The Oil Refining And Marketing Industry, March 27, 2014
• Group Rating Methodology, Nov. 19, 2013
• Ratings Above The Sovereign--Corporate And Government Ratings: Methodology And Assumptions, Nov. 19, 2013

Related Research

• S&P Global Ratings Revises Its WTI And Brent Price Assumptions For 2025 And Beyond On Anticipated Oversupply, March 11, 2024
• Industry Credit Outlook 2024: Oil and Gas, Jan. 9, 2024
• Industry Credit Outlook 2024: Midstream Energy, Jan. 9, 2024
• North American Refining Sector Credit Quality Can Withstand Some Margin Pressure, Oct. 31, 2023
• S&P Global Ratings Webinar: Will The Good Times Roll On In The Energy Sector?, Oct. 27, 2023