S&P lowers Ultra Petroleum view to negative

Standard & Poor’s said it revised the outlook on Ultra Petroleum Corp. to negative from stable and affirmed its BB corporate credit rating.

S&P also said it affirmed the BB rating and 3 recovery rating on Ultra’s structurally subordinated unsecured debt.

The outlook revision primarily reflects estimates for increased leverage as a result of lower natural gas price deck assumptions, the agency said.

Ultra’s production is about 90% natural gas and the company has hedges covering about 65% of its projected natural gas volumes for the remainder of 2015, S&P said.

The ratings reflect the company’s satisfactory business risk, aggressive financial risk and adequate liquidity, the agency said.

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