Moody's eyes Aker BP for upgrade

Moody's Investors Service said it placed Aker BP ASA's Baa3 long term issuer rating and the Baa3 senior unsecured instrument ratings on review for upgrade. The outlook has been changed to under review from stable.

This action follows the Dec. 21 announcement that Aker BP will buy the oil and gas assets of Lundin Energy AB. The acquisition entails a total consideration of around $10.9 billion (as at Dec. 20) that Aker BP plans to settle with cash and stock in a proportion of 20% and 80% respectively, Moody’s said. The deal is expected to close in the first half of 2022.

The agency said the review will focus on the transaction concluding as planned, confirmation that the financial policy and capital allocation framework will not change, and any conditions placed on the combined company to obtain approval from relevant authorities.

“Based on current information, Moody's anticipates that an upgrade of Aker BP's ratings will be limited to one notch at the conclusion of the review,” the agency said.

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