Fitch Affirms Ocean Energy's Debt Ratings.Business Editors CHICAGO--(BUSINESS WIRE)--Feb. 25, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. Ocean Energy, Inc.'s (Ocean) senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. rating at 'BBB-' and its senior subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". at 'BB' after the announcement that Devon Energy Devon Energy Corporation (NYSE: DVN), headquartered in downtown Oklahoma City, Oklahoma, USA, is one of the world’s leading independent oil and gas exploration and production companies. is purchasing Ocean in a stock for stock transaction. The rating action affects approximately $1.4 billion of Ocean's publicly rated debt. The Rating Outlook is now Stable. The affirmation follows yesterday's announcement that Ocean is being bought by Devon in $5.3 billion transaction that includes the assumption of approximately $1.8 billion in adjusted Ocean debt. The agreement calls for Ocean shareholders to receive .414 shares of Devon common stock for each share of Ocean common. Based on closing values yesterday, the total value of the stock to be issued is approximately $3.5 billion. The affirmation is based upon the affirmation of Devon Energy's debt ratings and the probability that Devon will assume but not guarantee the debt of Ocean. Consequently, Fitch is maintaining a one notch differential between the senior unsecured ratings of Devon 'BBB' and Ocean 'BBB-'. |
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