S&P affirms Kerr-McGee

Standard & Poor's said it affirmed its BBB long-term corporate credit rating on Kerr-McGee Corp. and removed the rating from CreditWatch with negative implications. The A-3 short-term rating on the company was not on CreditWatch.

At the same time, S&P assigned its BBB senior unsecured debt rating to Kerr-McGee's proposed $600 million senior unsecured notes due 2024.

S&P also raised its corporate credit rating on Westport Resources Corp. to BBB from BB to equalize it with its rating on Kerr-McGee and removed the rating from CreditWatch with positive implications.

The outlook is negative.

S&P said the ratings on Kerr-McGee were placed on CreditWatch on April 7 following the company's announcement that it was acquiring Westport Resources in a $3.4 billion dollar stock-for-stock transaction, including Westport's debt of about $900 million.

The ratings on Kerr-McGee reflect its average business position in the volatile exploration and production segment of the oil and gas industry, partially offset by a moderately aggressive financial profile. Relative to many of its peers, Kerr McGee has an attractive set of growth opportunities. The ratings on Kerr-McGee also incorporate its sizeable titanium dioxide production, a business plagued by uneven profitability and deep cyclicality.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.