Fitch: Devon Energy notes BBB+

Fitch Ratings said it expects to assign a BBB+ to Devon Energy Corp.’s proposed senior unsecured notes issuance.

The proceeds will be used to repay the outstanding $500 million floating-rate notes due December 2015, the agency said. Any remaining proceeds will be for general corporate purposes, Fitch said.

The proposed issuance addresses Devon’s near-term maturity and helps to support its liquidity profile, the agency said.

The ratings reflect the company’s large North American onshore reserve and production base, increasing exposure to liquids and credit-conscious financial policy, Fitch said.

Offsetting factors include the company’s execution risk associated with the development of its U.S. onshore reserve base and possibility that management accelerates drilling activity ahead of supportive pricing signals, the agency said.

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