Moody's affirms Encana at Baa2

Moody's Investors Service said it affirmed Encana Corp.'s Baa2 senior unsecured rating and P-2 commercial paper rating.

The outlook remains stable.

"The affirmation of Encana's ratings reflects its significant size, scale and diversity of operations that afford the opportunity to generate significant alternate liquidity through asset sales, and should enable the transition to a more liquids rich production mix from existing property holdings without increasing debt levels," Moody's senior vice president Terry Marshall said in a news release.

"Encana's current production is about 95% gas, which is problematic at current low prices, but we believe Encana can successfully transition to more liquids production. Encana's track record as a first mover in new resource plays and a successful developer and operator are skills that should transfer to the development of more liquids rich opportunities," Marshall added in the release.

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