A report from the global rating firm Standard & Poor's says high commodity prices and improved liquidity will hold up credit ratings globally.

But it warned that if companies' financial performance or credit market issues deteriorate, it will lead to rating downgrades.

S&P Rating Services report said oil and gas companies would hold steady through 2007. However, there is a chance that the turmoil in the credit market may negatively affect ratings down the line.

The report pointed out that oil and gas upgrades outpaced downgrades by nearly two to one this year through August.

S&P said it is closely watching developments in commodity prices, credit markets, financial performance and consolidation for how those factors may affect ratings.

"Oil prices remain near record highs and provide a beneficial operating environment for companies in the sector," S&P credit analyst Andrew Watt said.

He said S&P is confident that oil prices will remain high.