Moody's ups Occidental Petroleum

Moody's Investors Service said it upgraded Occidental Petroleum Corp.'s corporate family rating to Ba1 from Ba2, probability of default rating to Ba1-PD from Ba2-PD, senior unsecured notes rating to Ba1 from Ba2 and senior unsecured shelf rating to (P)Ba1 from (P)Ba2. The speculative grade liquidity rating remains SGL-1.

"Occidental Petroleum generated increasingly higher earnings in 2021 as oil and gas prices rose, and significantly reduced its leverage by applying free cash flow and asset sale proceeds towards debt reduction," stated James Wilkins, a Moody's vice president, in a press release.

"If oil and gas prices remain elevated in 2022, the company will generate significant free cash flow, allowing it to achieve its net debt target of mid-$20 billion during the year. Occidental's tender offer announced this week is expected to reduce debt by $2.5 billion in the first quarter," he added.

The outlook remains positive.

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