Fitch: Chesapeake Energy view negative

Fitch Ratings said it affirmed Chesapeake Energy Corp.’s long-term issuer default rating at BB- and revised the outlook to negative.

Fitch said the negative outlook reflects heightened asset sale execution risk, as well as the potential for further deterioration of the free cash flow (FCF) profile.

The agency believes that the announced private exchange offer signals management's unwillingness or inability to sell assets in the current stressed hydrocarbon pricing environment to help address forecasted FCF shortfalls and debt maturities. While the company currently maintains adequate liquidity, without support from asset sales over the medium-term, financial flexibility could be reduced to levels inconsistent with a BB- rating.

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