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Moody's downgrades Range Resources on impact of low price environment from SNL Energy Finance Daily Moody's downgrades Range Resources on impact of low price environmentByline: Tim Siccion Moody's on April 2 downgraded Range Resources Corp.'s corporate family rating to B2 from Ba3 with a negative outlook. The rating agency also lowered its ratings for the company's senior unsecured notes to B3 from B1, senior subordinated notes to Caa1 from B2 and probability of default rating to B2-PD from Ba3-PD. Moody's said its assessment of Range is based on the expectation of continued weakness in gas prices and high levels of upcoming debt maturities between 2021 and 2023 amid unsupportive capital markets, despite the shale gas producer being well-hedged for 2020. Range's corporate family rating of B2 "is constrained by its sensitivity to natural gas prices with natural gas contributing about 70% of production, a limited hedge position after 2020, and increased refinancing risk," Moody's said. The negative outlook indicates the heightened possibility that low oil and gas prices and tight capital market conditions could remain for a longer period of time. Range recently slashed its capital budget from $520 million to $430 million on March 31 in response to low oil and gas prices. However, Moody's said that despite this and Range's low-cost structure, the weak commodity price environment continues to stress the company's earnings. |
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Msg # | Subject | Author | Recs | Date Posted |
396 | Re: Moody's downgrades Range Resources on impact of low price environment | tigris72poo | 1 | 4/8/2020 5:26:11 PM |