Moody's rates Antero notes Ba3

Moody's Investors Service said it assigned a Ba3 (LGD5) rating to Antero Resources Corp.’s proposed $500 million senior notes due 2023. Antero's other ratings are unchanged, and the outlook is stable.

Note proceeds will be used initially to repay a portion of the borrowings under the company's senior secured revolving credit facility.

"This transaction improves Antero's liquidity, which is prudent in an environment of weak commodity prices," Stuart Miller, a Moody's vice president and senior credit officer, said in an agency news release. “But the need for the financing is driven by the company's serial out-spending of cash flow from operations, a major consideration in the company's credit rating."

The agency said Antero's Ba2 corporate family rating reflects its scale and ability to grow production and reserves in a low commodity price environment thanks to its low-cost structure and high capital efficiency, Moody's said.

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