Fitch downgrades Hess, notes, loan to BBB-

Fitch Ratings said it downgraded Hess Corp.’s issuer default rating, senior unsecured notes and senior unsecured revolver to BBB- from BBB and revised the outlook to stable from negative.

Pro forma for October debt repurchases and redemptions, roughly $6.1 billion of Hess debt is affected by this action, excluding non-recourse debt at Hess Infrastructure Partners.

Fitch said the downgrade reflects the loss in size and diversification seen at the company over the last few years due to asset sales, including the most recent sale of 50% stake in Hess Infrastructure; year-to-date negative free cash flow of negative $1.6 billion, which has now about offset the company's earlier equity and convertibles raise; and limited production growth prospects in the near- to medium-term, which are expected to keep projected credit metrics weak for the BBB category.

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