S&P may upgrade Unocal

Standard & Poor's said it placed its BBB+/A-2 corporate credit rating on Unocal Corp. on CreditWatch with positive implications.

The rating action follows the announcement that ChevronTexaco Corp. (AA/stable/A-1+) intends to acquire Unocal for $18 billion, including assumed debt, comprised of 75% common stock and 25% cash.

The positive CreditWatch listing for Unocal reflects ChevronTexaco's superior credit strength and the strong likelihood for a ratings upgrade if the acquisition is successful, S&P said.

S&P rates Unocal's senior unsecured debt BBB+ and preferred stock BBB-.

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