DBRS lowers Andarko, Kerr-McGee views to negative

DBRS said it confirmed Anadarko Petroleum Corp.’s issuer rating at BBB, along with the senior unsecured notes and debentures ratings of Anadarko and Kerr-McGee Corp. at BBB.

DBRS also said it changed the trends to negative from stable.

Because of the sharp and steep decline in oil and gas prices, Anadarko’s key credit metrics for the last 12 months ending Sept. 30 have weakened considerably and are now less than the BBB threshold, the agency said.

DBRS added that the company has the flexibility to respond to pricing pressures and has sharply curtailed capital spending and sold assets.

Furthermore, the company has sufficient liquidity and a low-cost production base sourced from a diverse portfolio of producing assets mainly from key basins in the United States to withstand a period of weak pricing, the agency said.

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