Moody's lowers American Energy – Permian Basin

Moody's Investors Service said it downgraded American Energy – Permian Basin, LLC's corporate family rating to Ca from Caa3 and probability of default rating to Ca-PD from Caa3-PD.

The downgrades follow the company's non-payment of interest on its floating-rate senior notes due 2019, senior notes due 2020, senior notes due 2021 and the exchangeable junior subordinated notes due 2022.

The downgrades include the company's senior secured first-lien notes to B3 (LGD 1) from B2 (LGD 1), senior secured second-lien notes to Caa2 (LGD 2) from Caa1 (LGD 2) and senior unsecured notes to C (LGD 5) from Ca (LGD 5).

The downgrades reflect the high likelihood of default and a view on the potential overall recovery, Moody's said.

The downgrades also consider a view of potential recovery on the notes, the agency said.

If the company files for bankruptcy protection or performs an out-of-court restructuring, the probability of default rating will be downgraded to D-PD, Moody's said.

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