Fitch changes Apache view to negative

Fitch Ratings said it revised Apache Corp.’s outlook to negative from stable.

` The main driver of the revised outlook is the deep drop in oil prices, which led Fitch to revise its base case price deck lower, resulting in weaker near-term leverage metrics and cash flow projections. As a result of the lower deck, Apache’s leverage metrics are weak for the rating category in 2020 and 2021. While Fitch expects Apache’s leverage to fall back into the category in subsequent years, a scenario of prolonged lower prices could result in additional downside pressure. Apache was relatively unhedged in 2020, leaving it exposed to negative spot price movements, the agency said.

The agency affirmed the BBB ratings on the company and its unsecured debt.

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