Moody’s affirms rating on Andarko’s $1.5 billion notes proposal

Moody’s affirms rating on Anadarko notes

NEW YORK — Moody’s Investors Service affirmed its rating of Anadarko Petroleum Corp. after the oil and gas company involved in the Gulf of Mexico oil spill said it planned a $1.5 billion bond sale.

The company has proposed issuing $1.5 billion of seven-year senior unsecured notes, which Moody’s said should not affect its “Ba1″ corporate family rating.

Moody’s said the decision to leave the ratings unchanged reflects Anadarko’s relatively strong liquidity with $3.4 billion in cash.

But the ratings agency said it is unclear how much liability the company has over the huge clean up costs of the Gulf after the lengthy oil spill.

Anadarko owns 25 percent of the well responsible for the spill, and it’s currently in a dispute with partner BP over who will pay to clean up from the disaster. BP has said Anadarko should pay $1.2 billion, but Anadarko argues BP bears responsibility for the spill.

Moody’s also said it will likely lower Anadarko’s rating to “Ba2″ when an earlier $1.5 billion six-year senior secured Term Loan B closes or if the company significantly draws down a $5 billion revolving credit facility.

Shares of Anadarko rose 67 cents to close at $56.35.