Summary
ONEOK, Inc. (OKE) announced on August 28, 2002, that Moody's Investor Services has downgraded its credit ratings, citing a negative outlook. The most significant changes include a downgrade of its senior unsecured rating from A2 to Baa1 and its commercial paper rating from Prime-1 to Prime-2. These rating changes reflect a shift in the company's creditworthiness as assessed by Moody's. In response to the downgrade, ONEOK emphasized its strong balance sheet and asset base, along with its continued strategic focus. While acknowledging that the rating change may lead to higher borrowing costs, the company expressed confidence that it will not materially impact its financial position, cash flows, or results of operations. Investors should monitor the impact of increased borrowing costs on future profitability and capital expenditure plans.
Key Highlights
- 1Moody's Investor Services downgraded ONEOK, Inc. (OKE) credit ratings on August 28, 2002.
- 2The company's senior unsecured rating was lowered from A2 to Baa1.
- 3ONEOK's commercial paper rating was reduced from Prime-1 to Prime-2.
- 4Moody's assigned a negative outlook to the company's ratings.
- 5ONEOK cited its strong balance sheet, asset base, and strategic focus in response to the downgrade.
- 6The company believes the rating change will not have a material adverse effect on its financial position, cash flows, and results of operations.
- 7The filing includes press releases from both Moody's and ONEOK regarding the rating action.