S&P elevates WPX Energy, debt

S&P said it raised its corporate credit rating on WPX Energy Inc. to BB- from B+.

The outlook is stable.

The agency also raised the issue-level rating on the company's unsecured debt to BB- from B+. The recovery rating remains 4, reflecting an expectation of average (30%-50%; rounded estimate: 35%) recovery in the event of payment default.

“The upgrade reflects WPX's success in increasing production, primarily liquids, while improving leverage,” S&P said in a news release.

“While the company outspent internally generated cash flow in 2017 and we expect it to do so again in 2018, proceeds from completed and pending asset sales provide proceeds to fund the deficit.”

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