Moody's affirms Nexen

Moody's Investors Service said it confirmed Nexen Inc.'s Baa3 senior rating and Ba1 subordinated rating. This concludes the review for downgrade that began on Dec. 7.

The outlook is negative.

The confirmation of Nexen's Baa3 senior rating reflects management's commitment to debt reduction sufficient to restore leverage metrics to levels more commensurate with a Baa3 rating, the agency said.

Nexen's ratings reflect its ability to generate strong netbacks owing to an oil-weighted product mix and the value of its ownership positions in Horn River shale gas as well as Nexen's very high debt level and high leverage in terms of production and reserves, high capex and economic targets in a timely manner, and a concentrated production platform, Moody's said.

© 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.