DBRS Upgrades Unsecured Notes and Debentures Ratings of Anadarko Petroleum Corporation and Kerr-McGee Corporation to BBB with Stable Trends

DBRS Limited has today upgraded the Senior Unsecured Notes and Debentures Ratings of Anadarko Petroleum Corporation (Anadarko or the Company) and Kerr-McGee Corporation (Kerr-McGee), a wholly owned subsidiary of Anadarko, to BBB from BBB (low). Anadarko’s Issuer Rating remains unchanged at BBB. All trends are Stable. This rating action reflects the removal of the structural subordination of the unsecured notes after the Company fulfilled all three conditions mentioned below on January 23, 2015, and replaced its secured credit facility with two unsecured facilities.

In June 2014, Anadarko entered into a $3.00 billion five-year revolving credit facility and a $2.00 billion 364-day revolving credit facility which would replace the $5.0 billion secured credit facility upon completion of certain conditions, including: (1) repayment of all amounts owing under the existing $5.00 billion secured facility, termination of all associated commitments and release of all associated liens; (2) U.S. District Court of Manhattan entering an order approving the Tronox Limited (Tronox) litigation settlement agreement and issuing an injunction barring certain third-party claims; and (3) Anadarko making the $5.15 billion payment related to the Tronox settlement agreement, including all associated interest expense as agreed upon.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Companies in the Oil and Gas Industry (October 2014), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.