Wednesday, June 23, 2010

Anadarko (NYSE:APC) Bonds Hit Hard

Anadarko Petroleum's (NYSE:APC) bond market have been hit hard. This drop happened after Moody decreased its credit rating of Anadarko one level to Bb1. This is one step below investment grade.

The securities due in 2016 were at 5.95 percent, the decline of 2.7 cents brought it to 88.1 cents on the dollar, yielding 8.45 percent. The day before the spill April 19th, the notes traded at 110.9 cents and then fell to 87.5 cents on the dollar.

Robert Gwin, chief financial advisor for Anadarko said the downgrade, "is very disappointing and surprising in light of Anadarko's limited role as a non-operating investor in the Macondo well."

Brookfield's Levington said, "I think the credit markets have downgraded all of the spill companies by several notches. The ratings agencies are trying to catch up with what the markets have already done."

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