Moody’s cuts Centennial

Moody’s Investors Service said it downgraded Centennial Resource Production, LLC’s ratings, including corporate family rating to Caa1 from B3, probability of default rating to Ca-PD from B3-PD and ratings on its senior unsecured notes to Caa3 from Caa2. The SGL-4 Speculative Grade Liquidity rating is unchanged.

“The downgrade of CRP’s PDR to Ca-PD is driven by the increased probability of default as CRP is in the process of finalizing its exchange offer for the senior notes that the company expects to close on May 19, 2020. If the offer is successful, Moody’s will view it as a distressed exchange and a default under Moody’s definitions. Upon the completion of the offer, an ‘/LD’ (limited default) signifier will be appended to CRP’s PDR to recognize the default,” the agency said in a press release.

The outlook remains 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.