Fitch: Chevron unaffected

A ruling by a provincial appeals court in Ecuador upholding an $18 billion judgment against Chevron Corp. creates headline risk but is not expected to affect the company's credit profile, according to Fitch Ratings.

The judgment stems from a long-running civil court case in Ecuador in which plaintiffs allege environmental damages related to wastewater disposal in the Amazon Basin by a subsidiary of Texaco, which Chevron acquired in 2001.

Fitch said it continues to view the credit risk to bondholders stemming from a prospective settlement as low. Risks of a large near-term payout are mitigated by the potential for legal challenges to go on for years, as well as the fact that Chevron has no significant assets remaining in Ecuador.

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