Moody's rates Sheridan CFR, loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and B3-PD probability of default rating to each of Sheridan Investment Partners II, LP, Sheridan Production Partners II-A, LP and Sheridan Production Partners II-M, LP (collectively, Sheridan II).

Moody's also assigned B2 ratings to Sheridan II's senior secured term loans and a speculative grade liquidity rating of SGL2. The outlook for each entity is stable.

Proceeds from the term loans will be used to reduce outstandings and commitment amounts under each partnership's revolving credit.

"The B2 CFR reflects Sheridan's low-risk reserve base and higher leverage relative to its peer companies," Moody's senior credit officer and vice president Stuart Miller said in a news release. "The rating also considers the business plan that includes high distribution payouts with limited reserve growth potential along with a complex organizational structure."

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