S&P: Anadarko view to positive

Standard & Poor's said it revised the outlook on Anadarko Petroleum to positive from stable.

The agency also said it affirmed the company's BBB- corporate credit rating.

The agency said it believes Anadarko is on track to substantially de-lever following its fourth-quarter $4 billion cash settlement with BP regarding Macondo-related liabilities.

The payment was funded with debt and cash on hand, S&P said, and pushed Anadarko's funds from operations to debt ratio below 20% at yearend 2011.

The agency said it was holding off raising the rating given the uncertainty surrounding an ongoing lawsuit, the agency said, and the potential for a substantial cash payment, as well as headline risk.

The ratings reflect an assessment of the company's strong business risk and significant financial risk, S&P said.

Anadarko's business risk profile is viewed as strong, based on the company's large proven reserve base, good product and geographic diversity and a deep inventory of drilling locations that should allow for multi-year production growth, the agency said.

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