S & P downgrades three European oil companies

New York, Standard & Poor's has downgraded the company's Total, Statoil and BP yesterday said that lower oil prices will cut reduce the financial strength of major European oil company three. Based on its new vision that the oil market will just bounce back in 2018, S & P said the company expects these three companies will face challenges to reduce costs and investment continue funding a dividend to shareholders. British company BP's rating was lowered rating to A- with a moderate investment grade be given stable outlook means that the rating will not be evaluated in the medium term. Total of France has been a downgrade to the rating is A + and assigned a negative outlook to show that another downgrade may be made within the next 6 to 18 months. Statoil of Norway have also been downgraded to just A + and received a stable outlook . The S & P said that these three companies are the weak measures to maintain its financial strength and faced cash flow will be too low to maintain the dividend. The S & P, said: 'We consider that the decision to reduce debt and increase investment to facilitate allocation dividend to shareholders is negative compared to the credit outlook for the reduction would affect investment property which offers cash future. It is, however, the company said: 'Contrary to some oil companies America's major European oil companies does not cut the dividend declared or reduce capital investment. The S & P said the downgrade of these companies is based on the vision that has been re-evaluate its value after crude oil prices fell 75 percent in the last 18 months. The S & P said it expects the price of Brent crude was trading below $ 35 a barrel up to $ 50 a barrel by 2018. The company said that the oil companies can only offset some of the drop in oil prices by reducing the investment capital. The S & P has said that the profits from the oil refinery is also expected to drop from 25 to 33 percent also this year. Earlier this month, S & P assigned a negative outlook to the US major oil companies such as Chevron and ExxonMobil, based on the vision but lower crude prices