Moody’s lowers Jupiter Resources

Moody’s Investors Service said it downgraded Jupiter Resources Inc.’s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and senior unsecured notes rating to Caa2 (LGD 4) from Caa1 (LGD 4).

The outlook is stable.

The speculative grade liquidity rating of SGL-3 was withdrawn.

This action resolves a review for downgrade that began in January, Moody’s said.

The downgrades reflect Jupiter’s weak interest coverage, leveraged full-cycle ratio and asset coverage, the agency said.

While the company has hedged a significant portion of its natural gas production through 2016 and 2017, it will continue to generate negative free cash flow over the next two years, Moody’s said.

The ratings also are driven by the company’s weak expected interest coverage of less than 2.5x and leveraged full-cycle ratio in 2017, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.