S&P cuts Fieldwood Energy

S&P said it lowered its ratings for Fieldwood Energy LLC to CCC from B-. The agency also downgraded the first-lien term loan maturing in 2022 to B- with a recovery rating of 1, and the second-lien term loan to CCC with a recovery rating of 4.

“The collapse in oil prices will hurt Fieldwood's cash flow and leverage metrics. The company is well hedged for the first half of 2020, but hedges roll-off in the back-half of the year. We now project the company's funds from operations (FFO) to debt will average below 12% for the remainder of the year, which we view as approaching unsustainable levels for offshore independents,” the agency said in a press release.

The outlook is negative.

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