Fitch may raise Unocal

Fitch Ratings said it placed the senior unsecured debt rating of Unocal Corp. of BBB+ on Rating Watch positive following the announcement that it will be acquired by ChevronTexaco Corp. for about $18.4 billion.

Additionally, Fitch has placed the following ratings for Unocal on Rating Watch positive: the senior unsecured bank credit facility rating of BBB+; the trust convertible preferred securities rating of BBB; the commercial paper rating of F2; and Pure resources senior unsecured rating of BBB.

Fitch said the positive watch reflects the size and quality of the combined company's large, worldwide asset base, its strong cash flow generating capability, and its balance sheet strength. Fitch currently rates ChevronTexaco's senior unsecured debt AA.

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