Fitch changes Murphy Oil view to negative

Fitch Ratings said it affirmed Murphy Oil Corp.’s long-term issuer default rating and unsecured debt ratings at BB+ and revised the outlook to negative from stable.

The negative outlook reflects the agency’s concerns about longer-term liquidity and the possibility that the company may have to accept accommodative bank and capital market terms in order to preserve its financial flexibility.

Fitch said it believes heightened liquidity risks have resulted from the company's revolver going current (as of June 14) and from bank syndicates' reduced willingness to manage their oil and gas exposure in the current downcycle.

The outlook also reflects a loss of operational momentum and potential for further asset sales, concerns that could continue to result in reduced size and scale under a lower-for-longer scenario, according to the agency.

Roughly $3.2 billion in debt, excluding capitalized leases, is affected by this action.

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