Fitch rates Newfield notes BB+

Fitch Ratings said it assigned a BB+ rating to Newfield Exploration Co.'s proposed $500 million senior unsecured notes due 2022.

The outlook is positive.

Proceeds from the issuance will be used to pay down outstanding credit facilities. At Sept. 26, total borrowings outstanding were $845 on Newfield's revolver and $20.5 million on its money market lines of credit.

Fitch currently rates Newfield's issuer default rating BB+, senior unsecured bank facility BB+ and senior subordinated notes BB.

Fitch said Newfield's ratings are supported by the company's conservative management and financial practices; growing liquids; low production costs; reasonable debt/boe levels relative to its peers; improved asset profile; balanced growth with an emphasis on living within cash flow means; and sizable commodity hedge coverage.

Offsetting factors include the potential for additional debt to finance growth opportunities (primarily M&A) and the weak fundamentals associated with the natural gas market, the agency said.

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