Moody's upgrades Murphy Oil

Moody's Investors Service said it upgraded Murphy Oil Corp.'s corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD and senior unsecured notes rating to Ba2 (LGD 4) from Ba3 (LGD 4).

The outlook remains positive.

The positive outlook reflects an expectation that the company will continue to deliver steady growth in production and improve its leverage as it shifts its focus to self-funded growth and short-cycle capital projects, Moody's said.

The ratings are underpinned by disciplined reinvestment of operating cash flow to deliver steady production growth, even as higher decline rates in its mature offshore fields offset rapidly rising onshore production in the U.S. and Canada, the agency said.

The recent cash-funded joint venture transaction with Petrobras America Inc. accelerates the positive credit trend, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.