Fitch rates Occidental Petroleum notes A

Fitch Ratings said it assigned an A rating to Occidental Petroleum Corp.’s issuance of 4.2% senior unsecured notes.

Net proceeds will be used to refinance the repayment of the $500 million aggregate principal amount of its 1.5% senior notes due 2018 that matured on Feb. 15, 2018 and for general corporate purposes.

Fitch said the ratings reflect Occidental Petroleum’ size and scale (602,000 boepd, 2.6 billion boe of proved reserves at year-end 2017, of which 74% were proved developed), diverse resource base, strong operational track record, significant exposure to liquids (about 77% of 2017 production and 75% of reserves), and the integration benefits from chemicals and midstream.

“The ratings also reflect the company's premier position in the Permian, which should continue to drive portfolio margin expansion as Permian Resources grows; low geological risk associated with its enhanced oil recovery (EOR) business; and the countercyclical benefits of production sharing contracts (PSCs) in its international portfolio,” the agency said in a news release.

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