Fitch trims Ultra Petroleum

Fitch Ratings said it downgraded the long-term issuer default ratings of Ultra Petroleum Corp. and Ultra Resources, Inc. to B- from B.

The outlook remains negative.

Fitch also downgraded Ultra Resources' secured revolver and term loan to BB-/RR1 from BB/RR1 and assigned a new rating to its recently exchanged senior secured second-lien notes at B+/RR2.

The agency removed from rating watch negative and downgraded Ultra Resources' senior unsecured notes to CCC/RR6 from B/RR4.

Fitch said that while it views the impact of the debt exchange as a positive, the downgrade reflects lower production forecasts, which are expected to lead to weaker credit metrics, and the covenant-link risk to liquidity that could lead to a lower borrowing base and lending commitments.

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