Fitch trims Ultra Petroleum, ratings off watch

Fitch Ratings said it downgraded the long-term issuer default ratings on Ultra Petroleum Corp. and Ultra Resources, Inc. to CCC from CCC+. Fitch also downgraded Ultra Resources’ secured revolver and term loan to B/RR1 from B+/RR1, senior secured second-lien notes to B-/RR2 from B/RR2 and the senior unsecured notes to CC/RR6 from CCC-/RR6.

“Fitch’s ratings reflect the expected decline in production, high leverage metrics, and minimal asset coverage, which are partially offset by Ultra’s low operating and drilling cost structure and expected ability to maintain neutral FCF in the near term,” said Fitch in a press release.

The rating watch negative was removed from the issuer rating and senior notes.

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