Market Signals Review: Anadarko Petroleum Corp.: Market-Implied Ratings Retreat - Moody's Capital Markets Research

Market Signals Review: Anadarko Petroleum Corp.: Market-Implied Ratings Retreat

Market Signals Review: Anadarko Petroleum Corp.: Market-Implied Ratings Retreat - Moody's Capital Markets Research
Market Signals Review: Anadarko Petroleum Corp.: Market-Implied Ratings Retreat
Published Feb 16, 2016
7 pages — Published Feb 16, 2016
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Abstract:

CORPORATESISSUER COMMENT 16 February 2016RATINGSANADARKO PETROLEUM CORP. (APC) Moodys SR Unsecured Rating Baa2Moodys Outlook RURBond-Implied Rating B1CDS-Implied Rating B3EDF-Implied Rating B2As of February 10, 2016ContactsAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research,Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products.For further detail, please see the last page.Market Signals ReviewAnadarko Petroleum Corp.: Market-Implied Ratings Retreat The bond-, CDS-, and EDF-implied ratings for Anadarko all weakened recently. The bond-implied rating is at its lowest level since 2007. The CDS-implied rating is at its weakest observation since 2010. The EDF'-implied rating is at its worst level since 2007.The sharp decline in global energy prices is weighing heavily on the market signals of energy companies such as Anadarko.FIGURE 1. GLOBAL CDS-IMPLIED RATING GAPS BY SECTOREnergy companies globally have experienced a severe and rapid deterioration in their CDS-implied ratings gaps (Figure 1). For the sector of 69 global energy companies that we monitor, the average CDS-implied ratings gap is nearly -5 notches (red line) which maps to an average CDS spread of 833 bp, as of February 10. The energy sector average CDS-implied ratings gap is much worse than its -1 notch level two years ago (blue line), zero notch level four years ago (green line), and +1 notch level seven years ago (purple line). The average CDS-implied ratings of the energy sector have underperformed all sectors in comparison to the levels seven years ago and 12 months ago. Following the energy sector, global banking today has the second largest CDS-implied ratings gap of -3 notches, among 11 market-MOODY'S ANALYTICS CORPORATES2 16 February 2016 Market Signals Review: Anadarko Petroleum Corp.: Market-Implied Ratings Retreatimplied rating categories. Sovereign and non-banking finance als...

  
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Document ID
PBC_1017018
Report Type
Market Signals Review
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MLA:
Moody's Capital Markets Research. "Market Signals Review: Anadarko Petroleum Corp.: Market-Implied Ratings Retreat" Feb 16, 2016. Alacra Store. May 05, 2025. <http://www.alacrastore.com/storecontent/Moody-s-Capital-Markets-Research/Market-Signals-Review-Anadarko-Petroleum-Corp-Market-Implied-Ratings-Retreat-2141-2983>
  
APA:
Moody's Capital Markets Research. (2016). Market Signals Review: Anadarko Petroleum Corp.: Market-Implied Ratings Retreat Feb 16, 2016. New York, NY: Alacra Store. Retrieved May 05, 2025 from <http://www.alacrastore.com/storecontent/Moody-s-Capital-Markets-Research/Market-Signals-Review-Anadarko-Petroleum-Corp-Market-Implied-Ratings-Retreat-2141-2983>
  
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