Moody’s ups Chesapeake Energy, debt

Moody's Investors Service said it upgraded Chesapeake Energy Corp.’s corporate family rating to B3 from Caa1, first-lien, last-out term loan to B1 from B3, second-lien secured notes to B2 from Caa1 and senior unsecured notes to Caa1 from Caa2.

The speculative grade liquidity rating was affirmed at SGL-3.

The outlook was changed to stable from positive.

"The upgrade of Chesapeake's ratings reflects the company's improving cash flow leverage metrics in 2018 and expected move toward cash flow neutrality, underpinned by supportive commodity price hedging," Moody's senior vice president Pete Speer said in a news release.

"The company's progress in pushing out debt maturities has also lessened the risk of default, further supporting the upgrade."

© 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.