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CALGARY – The continued oil price rout has caused ratings agency Moody’s Investors Service to review the credit of seven Canadian oil and gas companies, possibly downgrading their debt.

The companies with debts placed under review for downgrade Wednesday include some of the largest energy players in Calgary: Suncor Energy Inc., Husky Energy Inc., Canadian Natural Resources Ltd., Encana Corp. and Cenovus Energy Inc.

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The ratings agency is also reviewing Canadian Oil Sands Ltd.’s and Baytex Energy Corp.’s debt for downgrade.

“Industry conditions have weakened further with oil and natural gas prices at multi-year lows,” Moody’s senior vice-preisdent Terry Marshall said in a release. He added that energy companies “will be stressed for a longer period with much lower cash flows, difficulty selling assets and limited capital markets access.”

Both oil and natural gas prices have fallen this month. The West Texas Intermediate oil price hit new multi-year lows after the OPEC oil cartel decided to continue producing over 30 million barrels of oil per day at its most recent meeting, and gas prices have fallen as a result of high storage levels and low withdrawals.

gmorgan@nationalpost.com

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