MOODY'S ASSIGNS A2 TO COUNTERPARTY RATING OF ATLANTIC RICHFIELD COMPANY AND SUBSIDIARIES
New York, 06-06-95 -- Moody's Investors Service assigned A2 counterparty ratings to the Atlantic Richfield Company (Arco) and to its subsidiaries, Arco British Limited and Arco Coal Australia, Inc. The rating assignments are part of Moody's program to establish counterparty ratings reflecting the creditworthiness of major U.S. and internationally based energy companies engaged in financial and commodity derivatives transactions. Arco's A2 rating reflects its consolidated credit quality as a major integrated petroleum company and the parent company's status as a direct counterparty obligor for the bulk of the entity's financial and commodity derivatives activities. Arco British Limited and Arco Coal Australia, Inc. are wholly-owned subsidiaries of Arco and benefit from parent guarantees that extend to their derivatives obligations. They provide funding and hedging for, respectively, Arco's exploration and production activities in the United Kingdom; for its coal mining and marketing activities in Australia; and for managing cross border currency exposures.
Moody's counterparty ratings address the financial capacity of a specific obligor to meet its financial contracts. In addition to the rating agency's "Aaa-through-C" rating symbols, Moody's has established an "NR" rating designation (Not Rated) to be used for affiliated entities active in derivatives when insufficient information precludes an assessment of the relative credit quality of the entities or the nature of any legal supports such as parent guarantees.
Atlantic Richfield Company, a major U.S. integrated petroleum company, is headquartered in Los Angeles, California.
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