Fitch lowers Chesapeake Energy view to stable

Fitch Ratings said it affirmed all of the ratings for Chesapeake Energy Corp.

The outlook also was revised to stable from positive.

The outlook revision reflects the reduced prospects of a rating upgrade over the next 12 months due to the impact of lower oil and gas prices on the company’s forecasted cash flow and leverage profiles, Fitch said.

The ratings reflect the company’s considerable size with an increasingly liquids-focused production profile and proved reserves base, solid reserve replacement history, favorable liquidity position and strong operational execution, the agency said.

These considerations are offset by the company’s levered capital structure and continued exposure to legacy drilling, S&P said.

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