Moody's upgrades Denbury

Moody's Investors Service said it upgraded Denbury Resources Inc.'s corporate family rating to Caa1 from Caa2, along with the ratings on its senior subordinated notes to Caa2 from Caa3 and the rating on the senior secured second-lien notes due 2021 to B3 from Caa1.

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

The outlook is stable.

The upgrades reflect the company's improved capital structure and an expectation it will grow production while spending within cash flows, Moody's said.

The upgrades reflect improvements in Denbury's capital structure and an expectation that the company will modestly grow its production in 2017 through 2018 as it increases capital expenditures and limits negative free cash flow, the agency said.

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