Moody's may upgrade Kerr-McGee

Moody's Investors Service said it placed Kerr-McGee Corp.'s ratings, including the Ba3 corporate rating, under review for possible upgrade.

This action reflects Kerr-McGee's operating improvement as it transforms from a predominantly offshore, international, exploration strategy to an onshore North American natural gas exploitation focus, the agency said.

The review also considers the company's reduced financial risk, measured by leverage and cash flow coverage, following its repayment of $4.25 billion borrowed in 2005 to fund a $4 billion share repurchase program.

These improvements are tempered by the company's recently announced $1 billion stock buyback, which Moody's predicted will be funded from the sale of Gulf of Mexico shelf properties and cash on hand.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.