S&P puts Chevron on watch

S&P said it placed Chevron Corp.'s AA issuer credit and senior unsecured ratings on CreditWatch with negative implications, reflecting the possibility that expected debt leverage could exceed expectations

Chevron has announced the acquisition of Anadarko Petroleum Corp. for $33 billion in cash and stock, $50 billion including the assumption of debt, the agency said.

Chevron also raised its annual share repurchase target to $5 billion per year from $4 billion.

Chevron plans asset sales of $15 billion to $20 billion in 2020 through 2022, on top of a planned $3 billion in 2019, to support cash flow and debt repayment

The company's A-1+ short-term and commercial-paper ratings are unchanged, S&P said, and will not change if the issuer credit rating is lowered.

The negative watch placement reflects the possibility that S&P could lower or affirm the AA issuer credit and senior unsecured ratings on Chevron when the Anadarko acquisition closes.

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