Moody’s affirms Devon, EnLink

Moody's Investors Service said it affirmed Devon Energy Corp.’s Ba1 corporate family rating, Ba1-PD probability of default rating, Ba1 senior unsecured debt rating and SGL-1 speculative grade liquidity rating.

Concurrently, the agency affirmed EnLink Midstream Partners, LP's Ba1 corporate family rating, Ba1-PD probability of default rating, Ba1 senior unsecured notes rating and SGL-3 speculative grade liquidity rating.

Both outlooks are stable.

"Devon is improving its capital efficiency through its focus in the STACK and Delaware Basin, while the company has reduced debt using asset sale proceeds and is maintaining strong liquidity," Moody's vice president Amol Joshi said in a news release.

"Devon should generate better margins by growing oil production from its higher-return assets and offset the decline profile of its legacy assets. Controlling capital spending, further reducing debt and growing its cash flow should improve the company's credit profile, even as its consolidated debt metrics are pulled down by EnLink's leverage."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.