S&P: Anadarko Petroleum on watch, Kerr-McGee, Western Gas on positive watch

Standard & Poor's said it placed its BBB+/A-2 corporate credit rating on Anadarko Petroleum Corp. on CreditWatch with negative implications following the company's announcement that it will acquire Kerr-McGee Corp. and Western Gas Resources Inc. in separate transactions totaling $22.4 billion, including existing debt at the acquired companies, net of cash on hand and proceeds from pending asset divestitures.

At the same time, S&P said it placed its BB+ corporate credit ratings on Kerr-McGee and Western Gas Resources on CreditWatch with positive implications.

At the close of the transaction, the ratings on these companies are likely to be equalized with the ratings on Anadarko, the agency said, noting that the acquisitions will initially be funded entirely with debt and cash on hand.

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