The Santos Ltd (ASX: STO) share price slipped lower today despite the gas company providing an update on its credit rating. The Santos share price finished the day slightly in the red, down 1.3% to $7.23.
Let's take a closer look at what Santos announced to the ASX market.
What did Santos announce?
The Santos share price ended the day mostly unscathed from the wider ASX market plunge that took hold today.
In its release, Santos advised that S&P Global Ratings (S&P) reaffirmed its BBB-credit rating with a stable outlook.
The report stated that S&P recognised Santos' successful strategy in improving its portfolio resilience and diversifying its assets. This included the company determination in lowering unit production costs across its different class of assets.
In addition, the broker said that Santos increased its exposure to fixed-price gas volumes within the Australian market.
Santos took this measure to protect its balance sheet and shore up positive cash flows to fund its Barossa Project. The ratings agency expects the company to maintain its well-controlled operating model over the next 12 to 24 months.
Head of management comments
Santos managing director and CEO Kevin Gallagher commented on the company's progress in overcoming volatile trading conditions. He said:
The confirmation from S&P of Santos' BBB- (stable) rating is an outcome of the disciplined operating model we have implemented over the past five years, combined with our diversified asset portfolio making us more resilient through the oil price cycle.
About the Santos share price
In the past 12 months, the Santos share price fared relatively well despite being hit by COVID-19 woes. The company's shares are up just above 3% from this time last year.
In the March 2020 market sell-off, its shares hit a multi-year low of $2.73 before rebounding in the later months.
At the current share price, Santos commands a market capitalisation of more than $15.1 billion.
