Moody’s applies B1 to Antero notes

Moody's Investors Service said it assigned a B1 rating to Antero Resources Corp.’s proposed $400 million add-on to its senior unsecured notes due 2022.

The outlook is stable.

Net proceeds will be used initially to repay a portion of the borrowings under the company's senior secured revolving credit facility, but ultimately to fund its aggressive investment program in the Marcellus and Utica unconventional shale plays.

"This transaction enhances Antero's liquidity by terming out revolver borrowings," Moody's vice president and senior credit officer Stuart Miller said in a news release. "But the company's significant out-spending of cash flow and high degree of reliance on the capital markets to finance its business plan remain important rating considerations. The ability to monetize its midstream investments later this year has become an important factor to enable Antero to keep leverage at acceptable levels for its current rating."

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