Fitch lifts Woodside to stable

Fitch Ratings said it revised the outlook on Woodside Petroleum Ltd. to stable from negative and affirmed the long-term foreign-currency issuer default rating at BBB+.

The foreign-currency senior unsecured rating of Woodside Finance Ltd. also was affirmed at BBB+.

The outlook revision reflects improvements to Woodside's financial risk profile following initiatives undertaken in response to lower oil and gas prices, Fitch said.

The stable outlook and rating affirmation reflect a view that the company's risk profile is now well-placed for the BBB+ rating after these developments and the improvement in oil prices, Fitch explained.

Woodside's credit and financial risk profiles have strengthened after it reduced operating costs, expanded production, improved operational performance, cut dividends and reinstituted a dividend reinvestment plan, the agency said.

Fitch said it expects increased rating headroom under its BBB+ rating over the next two- to three-years and credit metrics to remain within the tolerance level for its rating.

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