Moody’s trims Fieldwood Energy

Moody's Investors Service downgraded Fieldwood Energy LLC's corporate family rating to Caa2 from B3, probability of default rating to Caa2-PD from B3-PD, first-lien secured term loan to Caa1 from B1, and second-lien term loan to Caa3 from Caa1.

Fieldwood's outlook was changed to negative from positive.

“The sharp drop in global crude oil prices limits Fieldwood's cash flow and refinancing prospects while undermining liquidity given its limited hedge protection beyond 2020 and tightening covenants,” Sajjad Alam, Moody's senior analyst, said in a news release.

“The company will likely need to obtain a waiver or an amendment from its lenders to remain in compliance with the financial covenants if oil prices do not recover quickly by mid-2020.”

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