Moody's cuts Kerr-McGee to junk

Moody's Investors Service said it lowered the long-term and short-term debt ratings of Kerr-McGee Corp. to below investment grade.

Moody's assigned a Ba3 senior implied and lowered Kerr-McGee's senior unsecured notes to Ba3 from Baa3.

This action concludes the review begun March 4 that had reflected "material event risk" resulting from a more activist shareholder base. The outlook is stable.

Moody's said the downgrade of Kerr-McGee's ratings to below investment grade reflects the material shift in the company's risk profile as reflected by its share repurchase announcement and the corresponding increase in leverage.

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