Moody's assigns Baa1 local rating to Woodside

Moody's Investors Service said it affirmed the Baa1 foreign-currency issuer rating of Woodside Petroleum Ltd., the provisional Baa1 rating on its backed senior unsecured medium-term note program and the Baa1 backed senior unsecured ratings of Woodside Finance Ltd.

Moody's also said it assigned a Baa1 local-currency issuer rating to Woodside Petroleum.

The outlook remains negative.

The ratings reflects an expectation that the company's continued solid operating performance and the low production costs of its assets will support strong margins and generate solid earnings and cash flow through the cycle, Moody's said.

These strengths are balanced by an expectation that Woodside's credit metrics will deteriorate to weak levels for the rating in 2017, the agency said.

The expected weakening will be driven by higher net debt levels on the back of increased growth spending over the last two years, Moody's said.

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