Fitch affirms Anadarko

Fitch Ratings said it affirmed the debt ratings of Anadarko Petroleum Corp. following its announcement that it will divest some of its assets in a portfolio restructuring.

Currently, Fitch rates Anadarko's senior unsecured debt BBB+, its unsecured bank facility BBB+, its preferred stock BBB, and its commercial paper F2.

The outlook is stable.

Late yesterday, Anadarko announced that it intends to sell about 14% of its reserve base as part of a refocused strategy and asset realignment. The properties intended for sale represent about 22% of current production and are expected to produce $2.5 billion in proceeds, possibly more. From the expected net proceeds, which should be about $2.2 billion, Anadarko will buy back about $1.2 billion of debt (an approximate 23% decline) and $1.1 billion of stock (a 13% decline from book value and an approximate 7.6% decline from market value.) Debt is anticipated to decline to slightly under $ billion from $5 billion presently.

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