S&P: Kerr McGee unaffected

Standard & Poor's said that Kerr McGee Corp.'s (BB+/negative/B) announcement that it has entered into sales agreements with multiple parties for U.S. oil and natural gas properties does not immediately affect the rating on the company.

S&P also said the announcement is favorable for the company's credit profile because the overall proceeds from the sales are higher than expected: $330 million, after taxes.

The ratings incorporate the expectation for more than $4 billion of debt reduction from asset sales, divestitures and free operating cash flow, the agency said. The ratings and outlook remain unchanged as they are based on the expectation of rapid deleveraging after the company's debt-funded $4 billion share repurchase earlier this year.

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