S&P's Kerr McGee ratings unaffected

Standard & Poor's said its ratings on Kerr McGee Corp. (BB+/negative/B) are not affected by the company's announcement that its board of directors has approved a $1 billion share-repurchase program and the redemption of the company's $250 million 7% debentures due 2011.

S&P said the ratings will not be affected since the company expects to fund both transactions with existing cash on hand and anticipated free cash flow.

The company has substantial cash balances due to recent asset sales, the agency said. Furthermore, high oil and gas prices are likely to result in meaningful free operating cash flow throughout 2006.

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