France's Total to maintain dividend - Morgan Stanley

(Reuters) - French oil company Total (TOTF.PA) was adamant that its dividend is "sacrosanct" and would be maintained despite a fall in oil prices, Morgan Stanley said in a research report.

"(Total) management left us in no doubt whatsoever that the absolute priority was defending the dividend at all costs," Morgan Stanley analysts said in the note dated Jan. 19 following a meeting with Total.

Europe's second-largest oil company would employ all levers in a move to significantly reduce cash outflows, including capex and opex cuts, less project sanctions and continued asset disposals, the research report cites Total as saying.

Oil prices have been sliding for months, but the pain has mostly been felt by oil-services suppliers rather than majors like Royal Dutch Shell (RDSa.L) or Total. Investors kept some faith in them based on their record of paying reliable dividends.

Morgan Stanley has an "overweight" rating on Total shares.

(Reporting by Rama Venkat Raman in Bengaluru; Editing by Gopakumar Warrier)