Moody’s cuts Rex Energy, notes

Moody's Investors Service said it downgraded Rex Energy Corp.’s (REXX) corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and senior unsecured notes to Caa2 from Caa1.

The SGL-4 speculative grade liquidity rating was affirmed.

The outlook remains negative.

"The ratings downgrade was driven by the continued weakness in REXX's credit metrics and an asset base with high capital spending needs in a weak commodity price environment," Moody's senior analyst Sreedhar Kona said in a news release.

"The negative outlook reflects the potential for open market purchases of the company's debt at steep discounts to fair value and the prospect of increased financial stress beyond 2016."

© 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.