Moody's revises Woodside to stable

Moody's Investors Service said it affirmed the Baa1 issuer rating of Woodside Petroleum Ltd., along with the provisional Baa1 rating on the backed senior unsecured medium-term note program.

The agency also said it affirmed the Baa1 backed senior unsecured ratings of Woodside Finance Ltd.

The outlook was changed to stable from negative.

Moody’s said the outlook revision reflects an expectation that Woodside's earnings and cash flow will remain at solid levels over the next for 18 months.

Woodside announced an equity raising as part of its full-year earnings announcement, in which it also outlined plans to acquire up to an additional 50% interest in the Scarborough gas field from Exxon Mobil for about $444 million, plus an additional $300 million contingent upon a final investment decision on the development of the resource.

The acquisition, if completed, would give Woodside greater control over the development of the resource, which could underpin an expansion of its Pluto LNG facilities in Western Australia, the agency said.

The announcement of a sizable equity offering and the announced acquisition and further details around potential increases in investment spending for major projects beyond 2018 demonstrate the company's commitment to maintaining a conservative financial profile, Moody's explained.

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