Fitch affirms Chevron

Fitch Ratings said it affirmed Chevron Corp.'s issuer default rating and senior unsecured notes at AA, Union Oil Co. of California's unsecured notes at AA and the commercial paper and short-term issuer default ratings of Chevron and Chevron Funding Corp. at F1+.

The outlook is stable.

The agency said Chevron's ratings reflect the diversification benefits of the integrated oil business model, the size and quality of this supermajor's worldwide asset base, its strong cash flow generation capability, conservative financial management and very low debt levels.

Credit concerns center primarily on the possibility of merger and acquisition activity to bolster upstream growth, although Fitch said the company has a track record of financing past transactions conservatively.

The debt-to-EBITDA ratio at the end of 2008 was 0.2 times.

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