Fitch rates Occidental Petroleum notes A

Fitch Ratings said it expects to assign an A rating to Occidental Petroleum Corp.'s pending issuance of senior unsecured 10- and 30-year notes.

The proceeds will be used for general corporate purposes.

The outlook is stable.

The company also has a long-term issuer default rating of A, senior unsecured revolver A, senior unsecured notes rating of A, commercial-paper rating of F1 and short-term issuer default rating of F1.

The ratings reflect the company's size, diverse resource base, strong operational track record, significant exposure to liquids and conservatively managed balance sheet, Fitch said.

The company also enjoys modest integration benefits from its chemicals and midstream segments, the agency said, and lower geological risk stemming from its enhanced oil recovery business.

Credit concerns center on the potential effects that a prolonged period of low oil prices may have on the company's free cash flow and balance sheet, especially given the company's large dividend payout, which represents a significant use of cash.

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