Moody’s gives Diamondback Energy notes B2

Moody's Investors Service said it assigned a B2 rating to Diamondback Energy, Inc.'s proposed offering of $500 million senior unsecured notes due 2024.

Diamondback's other ratings and positive outlook remained unchanged.

Note proceeds will be used to repurchase the company's existing 7 5/8% senior unsecured notes due 2021 and for general corporate purposes, including the funding of a portion of its capital development plans.

The proposed notes are rated B2, one notch below the B1 corporate family rating under Moody's Loss Given Default Methodology given the significant size of the secured revolving credit facility, the agency said. The revolver has a first-lien claim to substantially all of Diamondback's assets.

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