Bulletin: 'BBB+' Rating On Woodside Petroleum Not Affected By Proposed Asset Purchase

MELBOURNE (Standard&Poor's) Dec. 16, 2014--Standard&Poor's Ratings Services said today that its 'BBB+/Stable' issuer credit rating on Woodside Petroleum Ltd. is not immediately affected by the announcement today that the company proposes to acquire Apache's Australian Wheatstone LNG and Balnaves oil interests and Kitimat LNG project interests in Canada for an aggregate purchase price of US$2.75 billion. In our opinion, the 'BBB+' rating on Woodside can accommodate this sizable asset acquisition, given our view that the company's currently strong credit metrics contribute to a large ratings buffer. We expect that Woodside will maintain its FFO to debt (adjusted to include asset-retirement obligations and operating leases) of more than 45% while the company beds down this acquisition and

...MELBOURNE (Standard & Poor's) Dec. 16, 2014--Standard & Poor's Ratings Services said today that its '###+/Stable' issuer credit rating on Woodside Petroleum Ltd. is not immediately affected by the announcement today that the company proposes to acquire Apache's Australian Wheatstone LNG and Balnaves oil interests and Kitimat LNG project interests in Canada for an aggregate purchase price of US$2.75 billion. In our opinion, the '###+' rating on Woodside can accommodate this sizable asset acquisition, given our view that the company's currently strong credit metrics contribute to a large ratings buffer. We expect that Woodside will maintain its FFO to debt (adjusted to include asset-retirement obligations and operating leases) of more than 45% while the company beds down this acquisition and funds its future capital commitments, even if oil prices remain depressed at current levels (about US$60 per barrel Brent spot price) for a prolonged period. We also expect Woodside to generate positive...

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