Moody's: Anadarko view to positive

Moody's Investors Service said it changed Anadarko Petroleum Corp. rating outlook to positive from developing.

The agency also affirmed Anadarko's Baa3 senior unsecured ratings and those of its wholly owned guaranteed subsidiaries, including Kerr-McGee Corp. and Union Pacific Resources.

This action follows the April 3, 2014 announcement that Anadarko has reached a settlement agreement with the plaintiffs in the Tronox Adversary Proceeding in which Anadarko has agreed to pay $5.15 billion to the plaintiffs to settle all claims.

"The settlement of the Tronox litigation provides clarity for this major contingency, with a loss amount that is at the lower end of the potential damages outlined in last December's US Bankruptcy Court opinion," Moody's senior vice president Pete Speer said in a news release.

"Although the ultimate loss is higher than we were originally expecting, Anadarko can fund the settlement out of cash balances and maintain its strong operating momentum and improving credit metrics."

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