Moody’s, the ratings agency announced that it had put 120 oil and gas companies, together with 55 mining companies, under review for a potential downgrade, due to a prolonged slump in crude oil price, BidnessETC reported. The review is expected to be completed by the end of Q1 of 2016.

Another ratings agency, Standard & Poor’s has also signaled downgrades for major oil companies in 2016. Companies’ balance sheets indicate substantial risk already. With a projected additional drop in oil prices – in light of Iran’s oil output boost – the situation is likely to deteriorate over increasing borrowing costs for the companies, as a consequence, BidnessETC explained.

In addition, Moody’s slashed its crude oil forecast for 2016 by $10 to $33 a barrel, citing continued oversupply in the global oil markets, which is unlikely to cease due to additional 500,000b/d of oil from Tehran, Business Standard wrote. The agency, nonetheless, forecasts the crude oil prices to rise by $5 per barrel on average in 2017 and 2018, the International Business Times reported. Increased production vastly exceeds growth in oil consumption even from major consumers such as China, India, and the US.