Exxon Mobil Corporation (XOM)

[eFinanceMarkets]

Moody's ups Exxon outlook to stable, affirms Aaa rating

Exxon Mobil's (NYSE:XOM) Aaa rating is affirmed by Moody's with a stable outlook, reflects the agency’s expectation that XOM’s credit metrics will significantly improve through 2019 from 2016’s cyclically low levels.

"Substantial operating cost reductions and more efficient capital spending have restored [XOM’s] ability to fund the capital reinvestment necessary to maintain its industry leading business profile and generate free cash flow, even in this much lower oil price environment," Moody's says.

Moody's also expects XOM's debt levels to decline modestly over the next few years as free cash flow combined with asset sales more than offset acquisitions.