S&P rates Occidental notes A

Standard & Poor's said it assigned an A rating to Occidental Petroleum Corp.'s $750 million in senior unsecured notes due 2016.

The corporate credit rating is A.

The outlook is stable.

Proceeds will be used for general corporate purposes.

Ratings reflect the company's large and geographically diverse oil and gas reserve base, substantial long-lived assets in the United States with relatively low geological risk, a track record of generating substantial discretionary cash flow in most commodity price environments, some business diversification through its midstream and chemicals business segments and a modest financial risk profile, the agency said.

Ratings also incorporate participation in the highly cyclical and capital-intensive exploration and production segment of the oil and gas industry, exposure to some longer lead time international projects that can require significant future capital outlays, periodic acquisitions to supplement organic growth and a weaker near-term commodity price outlook, the agency noted.

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