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Moody’s cuts Chesapeake Energy, notes
Moody's Investors Service said it downgraded Chesapeake Energy Corp.’s corporate family rating to B2 from Ba2, probability of default rating to B2-PD from Ba2-PD and senior unsecured notes to B3 from Ba3.
The agency also assigned a B1 rating to Chesapeake's proposed $1.5 billion second-lien secured notes.
The speculative grade liquidity rating was affirmed at SGL-3.
The outlook remains negative.
The senior secured second-lien notes due 2022 are being offered in exchange for outstanding senior unsecured notes.
"The ratings downgrade reflects Chesapeake's persistently weak cash flow and the corresponding rising default risk. Industry conditions are increasingly challenging for Chesapeake to complete asset sales of the scale necessary to reduce debt to sustainable levels," Moody's senior vice president Pete Speer said in a news release.
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