Fitch affirms Devon Energy

Fitch Ratings said it affirmed Devon Energy Corp.'s long-term issuer default rating at BBB+, senior notes at BBB+, senior credit facility at BBB+, short-term issuer default rating at F2 and commercial paper rating at F2.

The agency also said it affirmed Devon Financing Corp. ULC's senior notes at BBB+ and Ocean Energy's senior notes at BBB.

The outlook will remain stable.

The senior notes assumed in the Ocean Energy acquisition have not been explicitly guaranteed by Devon, which is the primary driver for the one-notch differential in their ratings, Fitch said.

The ratings continue to be supported by the company's sizable reserve base and production profile, competitive levels of leverage and strong organic reserve replacement rates at competitive finding and development cost, the agency said.

While Devon's strong portfolio of projects is expected to enable the company to generate reserve and production growth in the years ahead, Fitch said it will continue to monitor the company's ability to grow without the need to pursue acquisitions.

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