Moody’s lowers WPX Energy notes to B3

Moody's Investors Service said it downgraded WPX Energy, Inc.’s senior unsecured notes to B3 from B2 and affirmed its corporate family rating at B2, probability of default rating at B2-PD and SGL-2 speculative grade liquidity rating.

The outlook remains negative.

The downgrade of the notes is a result of the WPX's revolving credit facility becoming secured.

The senior unsecured notes are rated B3, one notch below the B2 corporate family rating due to the secured nature and priority claim of the secured revolving credit facility, Moody’s said.

WPX amended the terms of its credit facility to provide more flexibility under the financial covenants and in the process moved to a secured credit facility. At certain rating levels and total leverage ratios, the credit facility moves back to being unsecured.

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