Printer Friendly

OCCIDENTAL PETROLEUM $726.4 MILLION MEDIUM-TERM NOTES RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

OCCIDENTAL PETROLEUM $726.4 MILLION MEDIUM-TERM NOTES RATED 'BBB' BY
 FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 24 /PRNewswire/ -- Occidental Petroleum Corp.'s $726.4 million of Medium-Term Notes due from nine months to 30 years from date of issue are rated 'BBB' by Fitch. The notes will be sold pursuant to a $1.5 billion shelf registration of senior debt securities under which $443.6 million is outstanding. The 'BBB' rating on outstanding senior debt issues and medium-term notes is affirmed, as is the 'F-2' rating on commercial paper. The credit trend is changed to stable from improving. Occidental will use the proceeds primarily to retire outstanding debt.
 Occidental's financial and operating restructuring has clearly focused the enterprise in its basic petroleum and chemicals businesses, lowered debt and debt leverage, and improved its financial flexibility. Key elements in this transition have been sales of non-strategic assets with proceeds used to reduce debt, scaling back overhead and operating costs, and a substantial cash dividend reduction. Between year-end 1990 and mid-year 1992, the company generated $2.9 billion from asset sales and reduced total debt by $1.8 billion to $5.9 billion at mid-year 1992. Debt leverage at that point was 57 percent, down from 65 percent at year-end 1990. Net expense reductions are geared to improve net income by $350 million annually, with another $450 million savings annually from the dividend cut, thus conserving cash in a difficult operating environment.
 Weak oil and depressed U.S. gas prices, together with soft commodity chemicals markets, continue to adversely affect recurring earnings and obscure restructuring benefits. However, with its operations on a sounder footing, even small improvements in energy prices and chemicals margins should quickly translate to earnings and cash flow improvements.
 Occidental Petroleum, based in Los Angeles, is a diversified energy and chemicals enterprise.
 -0- 8/24/92
 /CONTACT: Mary Anne Sudol of Fitch, 212-908-0562/
 (OXY) CO: Occidental Petroleum Corp. ST: California IN: OIL SU: RTG


SH -- NY071 -- 2679 08/24/92 15:41 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 24, 1992
Words:335
Previous Article:SHAREHOLDER FILES SUIT AGAINST SOUTHNET CORPORATION
Next Article:TELECOMMUNICATIONS NETWORK WEATHERS HURRICANE ANDREW WELL
Topics:


Related Articles
PSI ENERGY $300 MILLION FIRST MORTGAGE BONDS RAISED TO 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --
OCCIDENTAL PETROLEUM $150 MILLION TWO-YEAR MEDIUM TERM NOTES RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
OCCIDENTAL PETROLEUM $100 MILLION 30-YEAR MEDIUM-TERM NOTES RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
OCCIDENTAL PETROLEUM 'BBB' DEBT, 'F-2' COMMERCIAL PAPER AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
OCCIDENTAL PETROLEUM $1.5 BILLION SHELF RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
OCCIDENTAL $150 MIL MED-TERM NOTES RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
Occidental Petroleum Ratings Affirmed By Fitch
Occidental 'BBB' Senior Debt,'F2' CP By Fitch IBCA
Occidental $270M Extendable Notes Rated 'BBB' by Fitch.
Occidental Shelf Securities Rated 'BBB' by Fitch IBCA - Fitch IBCA -.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters