Fitch cuts Unit Corp.

Fitch Ratings said it downgraded Unit Corp. to CCC+ from B, the senior secured revolver to B+/RR1 from BB/RR1 and the senior subordinated notes to CCC+/RR4 from B/RR4.

Fitch said it maintained the rating watch negative on the ratings.

Unit plans to offer to exchange its 6.625% senior subordinated notes due 2021 for new second-lien secured notes. The proposed new notes will be secured by a second-priority lien on the current and future assets of Unit that secure the first-lien credit facility, the agency said.

“The downgrade reflects Unit Corporation’s loss of operational momentum and reduced financial flexibility associated with the company's heightened refinancing and liquidity risks,” said Fitch in a press release.

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