S&P rates Occidental Petroleum notes BB+

S&P said it assigned its BB+ issue-level rating with a 3 recovery rating to Occidental Petroleum Corp.'s new senior unsecured notes offering and placed it on CreditWatch with negative implications.

The 3 recovery rating indicates S&P’s expectation for meaningful (50%-70%; rounded estimate: 50%) recovery of principal for creditors in the event of a payment default.

The company will use the proceeds to further repay near-term debt maturities and for general corporate purposes.

“Our BB+ issuer credit rating on Occidental remains unchanged and it remains on CreditWatch negative. Although its recent debt offerings have reduced near-term refinancing risk, Occidental remains overleveraged for the rating and still has a substantial amount of debt maturing in the next two years,” S&P said in a press release.

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