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Fitch Raises Ratings of Unocal Following Merger With Chevron

Posted on: Friday, 12 August 2005, 12:00 CDT

Fitch Ratings has raised the ratings on the senior unsecured debt of Unocal Corporation (Unocal) to 'AA' from 'BBB+' following its merger with Chevron Corporation (Chevron). Unocal is now a wholly owned subsidiary of Chevron. Fitch is also raising the rating of the senior unsecured notes of Pure Resources, Inc. (Pure), a wholly owned subsidiary of Unocal, to 'AA' from 'BBB'. Of note is that Chevron is not expected to guarantee the senior unsecured debt of either Unocal or Pure. Fitch, however, believes the rating of 'AA' for the Unocal and Pure debt is warranted due to the substantially stronger credit profile of Chevron and strategic importance of Unocal's assets to Chevron.

With this release, Fitch is also withdrawing the rating on Unocal's junior subordinated debentures which have been retired. Fitch also anticipates Chevron retiring Unocal's commercial paper program and remaining credit facility and is therefore withdrawing the ratings on these facilities.

Fitch rates Chevron's debt as follows:

-- Senior unsecured debt 'AA';

-- Commercial paper 'F1+';

-- Rating Outlook Stable.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site. The issuer did not participate in the rating process other than through the medium of its public disclosure.

Source: Business Wire

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