S&P: Kerr-McGee unaffected

Standard & Poor's said that Kerr-McGee Corp.'s announcement that its board of directors has approved the separation of its chemical business through an initial public offering does not immediately affect the BB+/negative/B rating on the company.

The IPO is planned for the fourth quarter of 2005. The ratings on Kerr-McGee already incorporate the separation of the chemical business with the expectation that the IPO proceeds will be used toward debt reduction in the near term, S&P said.

S&P said the ratings will be lowered if management's debt reduction plans are not achieved in the expected time frame, if debt reduction falls short of expectations or if management is unable to achieve its production or reserve replacement goals.

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