Moody's affirms Pogo Producing

Moody's Investors Service said it affirmed Pogo Producing Co.'s Ba1 senior implied and Ba3 senior subordinated note ratings upon its announced series of: asset sales, stock buybacks, curtailed development capital spending, debt refinancings, and cash repatriations announced Tuesday.

The outlook is moved to developing from stable, pending the timing, sequence, and scale of the cash inflows and outflows of the announced program and the resulting impact on the operating and financial profile, the agency said.

Moody's said that in the developing outlook, there is no potential for an upgrade on the current business. There is a reasonable possibility for a ratings confirmation and stable outlook if Pogo fully executes its plan, including the important asset sale element, in a timely fashion.

However, ratings caution and a risk of downgrade exists if the full stock buyback program proceeds without an asset sale program.

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