Moody's revises Talisman Energy rating outlook to 'negative'

Reuters

CALGARY, Alberta, Oct 10 (Reuters) - Ratings agency Moody'srevised Talisman Energy Inc's rating outlook to"negative" from "stable" on Thursday, citing uncertainty overthe struggling Canadian oil producer's plans to slim down itsportfolio of oil and gas assets.

"Talisman's negative rating outlook reflects the uncertainoutcome of the portfolio transformation taking place under thecompany's strategic re-positioning," Terry Marshall, Moody'ssenior vice president, said in a statement.

"The company's capital productivity is weak and it isuncertain when a clear, profitable and sustainable organicgrowth profile will be evident."

The negative rating outlook comes just days after activistinvestor Carl Icahn disclosed a 6 percent stake in the companyand said he intended to talk with Talisman's management todiscuss strategic alternatives, including asset sales orrestructuring.

The announcement from Moody's came after trading closed onthe Toronto Stock Exchange. Talisman shares closed up 0.24percent at C$12.73.

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