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Moody's cuts Quicksilver Resources, gives loan B2
Moody's Investors Service said it downgraded Quicksilver Resources Inc.'s ratings, including the corporate family rating to B3 from B2, senior unsecured notes ratings to Caa2 from B3 and the subordinated notes rating to Caa2 from Caa1.
Moody's said it also assigned a B2 rating to the proposed $600 million second-lien term loan.
Moody's additionally downgraded the company's speculative-grade liquidity rating to SGL-4 from SGL-3.
The outlook remains negative.
"The rating downgrade is reflective of Quicksilver's persistent high debt level and natural gas concentrated production profile, resulting in weak cash flow interest coverage and high leverage metrics," Michael Somogyi, Moody's vice president-senior analyst said.
"The negative outlook reflects the company's continued weak operating profile with cash margins trending negatively and retained cash flow to debt deteriorating to below 5%."
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