Moody’s lowers Unit

Moody's Investors Service said it downgraded Unit Corp.'s corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, and senior subordinated notes to Caa1 from B3.

The speculative grade liquidity rating was downgraded to SGL-4 from SGL-2.

Moody's concurrently placed all of Unit's ratings under review for further downgrade.

“The downgrade and the review reflects Unit's elevated refinancing risk, tightening liquidity and lower year-on-year earnings prospects in 2020,” said Sajjad Alam, Moody's senior analyst, in a news release.

“Unit has to refinance $650 million of bonds due May 2021 prior to November 2020 because of a springing covenant in its revolver credit agreement under challenging industry and capital market conditions.”

© 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.