S&P: Kerr-McGee unaffected

Standard & Poor's said that Kerr-McGee Corp.'s (BB+/negative/B) credit quality is favored by the company's announcement that it used the net proceeds from the initial public offering and concurrent debt issuances by Tronox, as well as various asset sales, to pay off $4.25 billion in term loans.

The term loans were used to finance the company's $4 billion share-repurchase program earlier this year.

The debt repayment was completed more quickly than anticipated, the agency said. However, there is no effect on the ratings, which already incorporated the expectation of the repayment of the $4.25 billion in term loans by the first quarter of 2006.

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