Moody's confirms Berry

Moody's Investors Service said it confirmed the ratings for Berry Petroleum Co., including the B1 corporate family rating, the B1 probability of default rating and Berry's B3 (LGD 6, 91%) changed from (LGD 6, 90%) senior subordinated notes rating.

This concludes the review for possible downgrade initiated on Feb. 2, the agency said, adding that Berry's speculative-grade liquidity rating was upgraded to SGL-3 from SGL-4.

The outlook is negative.

The confirmation of the B1 corporate family rating reflects the company's liquidity position, which has been solidified through asset sales and additional credit facilities following the announcement of a new $140 million senior secured second-lien revolving credit facility and the confirmation of the newly re-determined $1.05 billion senior secured first-lien revolving credit facility, the agency noted.

These measures should provide some cushion against continued weakness in its cash flows from lower production and commodity prices and has enabled the company to reduce debt, Moody's noted.

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