The FINANCIAL — Fitch Ratings said the 2008 credit outlook for the Australian oil and gas (OTCBB:AOGC) sector is stable, on the back of strong fundamentals in the upstream sector, partially offset by aggressive capital expenditure on the development of new assets, continued pressure on costs across the industry and uncertain global economic conditions.
'The current high level of prices should provide strong cash flows underpinning stable credit metrics in the short term,' Fitch said.
Despite tight liquidity, the rating agency expects oil and gas companies are unlikely to face difficulties in accessing credit markets to refinance maturing facilities or to fund capex plans.
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