Fitch lifts Devon Energy

Fitch Ratings said it upgraded Devon Energy Corp.’s long-term issuer default rating to BBB+ from BBB, along with its senior unsecured notes to BBB+ from BBB and senior unsecured credit facility to BBB+ from BBB.

Fitch also said it affirmed the company’s short-term issuer default rating and commercial-paper ratings at F2.

The agency also said it upgraded Devon Financing Corp. ULC’s long-term issuer default rating to BBB+ from BBB and senior unsecured notes to BBB+ from BBB. The long-term issuer default rating was then withdrawn.

Fitch also upgraded Ocean Energy’s long-term issuer default rating to BBB from BBB- and senior unsecured notes to BBB from BBB-.

The outlooks are stable.

The upgrades were driven by debt reduction that has occurred since the acquisition of GeoSouthern Energy Corp. in February 2014, Fitch said.

Devon has quickly returned credit metrics to previous levels prior to the primarily debt-financed acquisition of GeoSouthern, the agency added.

The ratings also reflect its large proven reserve base in North America, sizable production levels balanced between liquids and natural gas and conservative financial policies, Fitch said.

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