S&P places Hess on positive watch

S&P said it placed Hess Corp.’s ratings, including the BBB- issuer rating, on CreditWatch with positive implications.

The placement follows Chevron Corp. announced it agreed to buy Hess in an all-stock deal valued at about $60 billion, including the company’s debt.

“The CreditWatch placement reflects the likelihood that we will raise our ratings on Hess following the close of the transaction to equalize them with Chevron. Our long-term issuer credit rating on Chevron is AA-, with an A-1+ short-term rating. The rating outlook is stable. We will likely view Hess as a core subsidiary of Chevron and expect Chevron to assume Hess' outstanding debt,” S&P said in a statement.

The deal is expected to close in the first half of 2024.

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