CORPORATESISSUER COMMENT 17 March 2016RATINGSOCCIDENTAL PETROLEUM CORP (OXY) Moodys SR Unsecured Rating A3Moodys Outlook STABond-Implied Rating Baa2CDS-Implied Rating Ba1EDF-Implied Rating A2As of March 15, 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.Occidental Petroleum CorporationOccidental Petroleum Corp.: Market-Implied Ratings Rebound Off Lows The EDF', CDS-, and bond-implied ratings for Occidental Petroleum all recovered from their worst levels of the past twelve months.The EDF-implied rating was A3 on multiple dates in January through early-March 2016, and is now A2 (Figure 1). For a brief period in June 2015 the EDF-implied rating was Aa3, but it did not sustain that advance for long.The CDS-implied rating is Ba1, and has climbed from its recent low of Ba2. The Ba2 observation was the lowest CDS-implied rating over the last five years.The bond-implied rating was A3 a year ago. It deteriorated by three notches to Baa3 on several days in January and February. The bond-implied rating had not been lower than Baa3 over the last five years. In early March it moved up briefly to Baa1, but has now settled at Baa2.FIGURE 1. OCCIDENTAL PETROLEUM: MOODYS AND MARKET-IMPLIED RATINGS, LAST 365 DAYS (DAILY DATA)MOODY'S ANALYTICS CORPORATES2 17 March 2016 Occidental Petroleum Corporation: Occidental Petroleum Corp.: Market-Implied Ratings Rebound Off LowsThe sharp decline in global energy prices has weighed heavily on the market signals of energy companies such as Occidental Petroleum over the past several months, but recent oil price rises have restored a modest level of investor confidence in the sector.According to our ratings gap-conditioned transition matrices, companies rated A3 with a bond-implied rating of Baa2 outperformed ...
