Occidental Becomes Biggest Fallen Angel After Fitch Downgrade
- Fitch cuts three notches, giving Occidental second junk rating
- Will be largest high-yield issuer with $35.2 billion of debt
Photographer: Jamie Schwaberow/Bloomberg
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Occidental Petroleum Corp. was downgraded to junk by Fitch Ratings as it struggles to combat a sharp decline in oil prices, making it the biggest fallen angel in this downgrade cycle.
The exploration and production company’s long-term default rating was cut three levels to BB+ and may be downgraded further, Fitch said in a statement late Friday. Fitch is the second credit rater to downgrade Occidental, following an earlier ratings action by Moody’s Investors Service, officially making it a fallen angel. Its $35.2 billion of debt will leave investment-grade indexes at the end of the month, and it will be the largest high-yield issuer.