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TEXT-S&P rates Newfield Exploration notes 'BBB-'
June 19, 2012 / 5:51 PM / 5 years ago

TEXT-S&P rates Newfield Exploration notes 'BBB-'

June 19 - Standard & Poor's Ratings Services today assigned its 'BBB-'
issue-level rating (same as the corporate credit rating) to Houston-based
Newfield Exploration Co.'s proposed $750 million senior unsecured notes
due 2024. 

The notes will be senior to the company's existing senior subordinated notes, 
but will be structurally subordinated to all obligations at the subsidiary 
level. Newfield's subsidiaries currently carry no debt, and we do not believe 
their priority liabilities (primarily trade receivables) create a material 
disadvantage for the issuer.

Newfield plans to use proceeds from the proposed notes offering to partly fund 
the recent redemption of $325 million of 6.625% senior subordinated notes due 
2014 and to redeem $550 million of 6.625% senior subordinated notes due 2016. 
The company has commenced a cash tender offer for the 6.625% senior 
subordinated notes due 2016, along with a consent solicitation on proposed 
amendments to the indenture governing the notes.  The amendments would 
eliminate most of the covenants and certain default provisions, and shorten 
the minimum notice period for redemption of the notes.  

The 'BBB-' corporate credit rating and stable outlook on crude oil and natural 
gas exploration and production company Newfield reflect the company's 
satisfactory business risk and intermediate financial risk. The ratings also 
reflect our view that natural gas prices will remain weak over the next 12 to 
18 months because of the significant growth in supply combined with flat 

     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
     -- Criteria Methodology: Business Risk/Financial Risk Matrix Expanded, 
May 27, 2009
     -- Corporate Ratings Criteria 2008, published April 15, 2008.

Newfield Exploration Co.
 Corporate credit rating                    BBB-/Stable/--

New Rating
 Proposed $750 mil sr unsecd nts due 2024   BBB-

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at Use the Ratings search box located in the left 

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