Moody’s eyes Crown Rock for boost

Moody's Investors Service said it placed CrownRock, LP's ratings on review for upgrade, including its Ba3 corporate family rating, Ba3-PD probability of default rating and B1 senior unsecured ratings. Previously, the outlook was stable.

The review was prompted by CrownRock agreeing to be acquired by investment-grade rated Occidental Petroleum Corp. in a $12 billion cash and stock deal, including CrownRock's debt, the agency said. The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions and regulatory approvals.

“If CrownRock's notes remain outstanding and are assumed or guaranteed by Occidental, then the ratings on the notes would be upgraded to Occidental's rating level. If CrownRock were to become an unguaranteed subsidiary of Occidental post-acquisition and continue to provide separate audited financial statements going forward, then its ratings would likely be upgraded based on the level of parental support,” Moody’s said in a statement.

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