Fitch revises OXY outlook to positive

Fitch Ratings said it changed Occidental Petroleum Corp.’s outlook to positive from stable and affirmed its issuer rating at BB+ and senior unsecured rating at BB+/RR4.

“The change in outlook was primarily driven by accelerated de-leveraging. This includes approximately $3.3 billion in debt reduction in Q1, comprised of a $2.9 billion multi-tranche tender, a repurchased note, and open market repurchases. Following an additional $300 million in open market repurchases and the $4.5 billion May tender, OXY will have reduced its debt on a pro forma basis by around $8.1 billion since the beginning of the year,” Fitch said in a press release.

The most recent tender’s effect on interest was more limited given the large amount of zero coupon notes ($1.34 billion) that were redeemed, the agency added.

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