Moody’s gives Chesapeake notes Caa1, might lift

Moody's Investors Service said it assigned a Caa1 rating to Chesapeake Energy Corp.'s proposed offering of senior unsecured notes, with the rating under review for upgrade.

Proceeds from the new notes will be used to refinance existing debt.

All existing ratings for Chesapeake are unchanged and remain under review for upgrade, pending the completion of the company's sale of its Utica Shale properties.

“These new senior notes are likely to be upgraded to B3 following the conclusion of our ratings review, assuming that the Utica asset sale closes with proceeds applied to debt reduction as expected,” Pete Speer, Moody's senior vice president, said in a news release.

“This notes offering allows Chesapeake to pre-emptively reduce secured debt in the capital structure, with the remaining secured debt and nearer term senior notes maturities to be repaid with Utica asset sale proceeds.”

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