Moody’s ups Anadarko, Kerr-McGhee, Union Pacific

Moody's Investors Service said it upgraded the senior unsecured ratings of Anadarko Petroleum Corp. and its guaranteed subsidiaries, including Kerr-McGee Corp. and Union Pacific Resources Group Inc., to Baa2 from Baa3.

The outlook was changed to stable from positive.

The action follows the completion of the Tronox litigation settlement and the replacement of the company's senior secured revolving credit facility with unsecured credit facilities.

Moody's also assigned Prime-2 short-term ratings to the company's new $3 billion commercial paper program, which will be used for general corporate purposes.

These actions had no effect on the Baa3 senior unsecured ratings and stable outlook of Western Gas Partners, LP, the midstream master limited partnership controlled by Anadarko.

"The upgrade reflects the completion of the Tronox litigation, which had been a substantial restraint on Anadarko's ratings, and continued strong operating momentum," Moody's senior vice president Pete Speer said in a news release. "Anadarko's low cost structure and capital flexibility will enable it to weather this low oil price environment consistent with its Baa2 exploration and production company peers."

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