S&P shifts Occidental Petroleum view to stable

S&P said it revised Occidental Petroleum Corp.’s outlook to stable from negative and all its ratings on the company, including the BB- issuer credit and unsecured issue-level ratings. The 3 (50%-70%; rounded estimate: 50%) recovery rating on the unsecured debt remains unchanged.

“The stable outlook on OXY reflects our expectation that it will focus on using its near-term excess cash flows for debt repayment, which supports our forecast for improving financial measures. We currently expect the company's funds from operations (FFO) to debt to average in the 12%-15% range while its debt to EBITDA averages between 5x and 5.5x over the next two years based on our latest oil and gas price forecast,” S&P said in a press release.

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