Moody's boosts Hess

Moody's Investors Service said it upgraded Hess Corp.'s unsecured long-term debt rating to Baa2 from Baa3 on April 28.

The upgrade to Baa2 reflects Hess's improved reserve replacement, a more competitive cost structure and stronger invested cash returns that are more consistent with its mid-Baa rated peer group, the agency noted.

Hess's improving operating and financial profile encompasses strong project execution, a rising production trend with good visibility on growth for the next few years and further progress on a roster of major development projects, most of which should continue to be funded from internal cash flow, S&P added.

The outlook is stable.

The ratings upgrade recognizes Hess's 2007 actual results, including all-sources reserve replacement of 167% (181% three year average) and year-end 2007 proved reserves totaling 1.33 billion BOE, up 7% from year end 2006 and a growing production profile, which increased by almost 5% in 2007, the agency said.

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