S&P lifts Diamondback Energy

Standard & Poor’s said it raised its corporate credit rating on Diamondback Energy Inc. to B+ from B. The outlook is stable.

S&P also raised its issue level rating on the company’s senior unsecured notes to B+ from B-. S&P revised the recovery rating on this debt to 4 from 5, reflecting an expectation for average recovery (30% to 50%; lower half of the range) in the event of a payment default.

“The rating action reflects Diamondback Energy Inc.’s sustained success at increasing its oil and gas production and reserves in the Permian Basin,” said S&P credit analyst Ben Tsocanos in a news release. “We expect this trend to continue, though at more modest levels given the current low commodity price environment and the company’s lower level of capital spending.”

© 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.