Moody’s drops Rex Energy, notes

Moody's Investors Service said it downgraded Rex Energy Corp.’s corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, senior unsecured notes to Caa1 from B3 and speculative grade liquidity rating to SGL-4 from SGL-3.

The outlook was changed to negative from stable.

"The downgrade of REXX's ratings reflect the company's weak interest coverage through 2016 and high capital intensity, which constrains its liquidity profile," Moody's vice president Gretchen French said in a news release. "The negative outlook reflects the reliance on potential asset sales and other external sources to fund capital spending in a cyclically low commodity price environment."

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