Moody's trims Denbury Resources

Moody's Investors Service said it downgraded Denbury Resources Inc.'s corporate family rating to Caa2 from B3, probability of default rating to Caa2-PD from B3-PD, ratings on its senior secured second-lien debt to Caa2 from B3 and ratings on its senior subordinated debt to Ca from Caa2. The speculative grade liquidity rating was downgraded to SGL-4 from SGL-2. The outlook has been revised to negative from stable.

The downgrade of Denbury's rating to Caa2 reflects Moody's expectation its revenues will decline in 2021 and the uncertainty over the company's ability to refinance its debt maturing in 2021. Denbury generated positive free cash flow in 2019, but may not in 2020 at lower current oil prices.

The negative outlook reflects the uncertainty over the ability of Denbury to refinance its debt maturing in 2021 on a timely basis and on favorable terms.

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