S&P lifts Range Resources view to stable

S&P said it affirmed the BB+ corporate credit rating on Range Resources Corp. and revised the outlook to stable from negative.

The senior unsecured and subordinated issue-level ratings remain at BB+.

The recovery rating remains at 3, indicating 50% to 70% expected default recovery.

Range Resources completed its acquisition of Memorial Resource Development Corp. for about $3.1 billion in stock and the assumption of $1.1 billion of debt, S&P said.

The use of equity to fund a large portion of the acquisition will reduce Range's financial leverage, the agency said.

The transaction also modestly increases Range's scale and geographic diversity, though reinforces the company's concentration in natural gas, S&P said.

The company’s exposure to natural gas prices continues to be a comparative disadvantage relative to oil under the current price assumptions, the agency added.

© 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.