Moody’s cuts California Resources

Moody’s Investors Service said it downgraded California Resources Corp.’s corporate family rating to Caa3 from Caa1 and probability of default rating to Caa3-PD from Caa1-PD.

Also, the agency downgraded the secured first-lien revolving credit facility to B2 from B1, its secured first-lien term loan due 2022 to Caa1 from B2 and its secured first-lien term loan due 2021 to Caa3 from Caa1. The rating on the secured second lien notes was downgraded to C from Caa2 and the ratings on the unsecured notes were downgraded to C from Caa3. The speculative grade liquidity rating was downgraded to SGL-4 from SGL-3.

The downgrades reflect the company’s elevated restructuring risk, including the potential for a bankruptcy filing or distressed exchange, following its failed attempt to execute a debt for debt exchange in March, Moody’s said.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.