Moody’s: Endeavor Energy outlook to negative

Moody's Investors Service said it changed Endeavor Energy Resources, LP's outlook to negative from stable and assigned an SGL-3 speculative grade liquidity rating.

The agency also affirmed all ratings, including the company's B1 corporate family rating, B1-PD probability of default rating and the B3 senior unsecured rating on its $500 million 7% notes due 2021.

"Endeavor's negative outlook reflects the likely deterioration in cash flow and credit metrics due to the weak commodity price environment," Moody's senior analyst Sreedhar Kona said in a news release.

"While covenant relief granted under the borrowing base credit agreement improves Endeavor's ability to respond to the current cyclical low period, the significant capital needs to develop its resources will strain available liquidity, unless other liquidity enhancing measures are pursued."

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