Moody’s cuts Rex Energy, notes

Moody's Investors Service said it downgraded Rex Energy Corp.’s corporate family rating to Caa3 from Caa1, probability of default rating to Caa3-PD from Caa1-PD and senior unsecured notes to Ca from Caa2.

The SGL-4 speculative grade liquidity rating was affirmed and the outlook remains negative.

"The ratings downgrade was driven by the continued steep deterioration in the commodity price environment, its impact on the credit metrics of REXX and the increased likelihood of a distressed debt exchange. The uncertainty around REXX's ability to meet its interest expense and the company's weak liquidity profile has significantly elevated the potential for purchases of debt at steep discounts to the face value or other balance sheet restructuring including bankruptcy filing," Moody's senior analyst Sreedhar Kona said in a news release.

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