Fitch lowers Extraction Oil & Gas

Fitch Ratings said it downgraded the long-term issuer default rating of Extraction Oil & Gas, Inc. to B- from B. Fitch also downgraded Extraction's secured revolver to BB-/RR1 from BB/RR1 and the unsecured notes to B-/RR4 from B/RR4. The IDR and instrument ratings have been placed on ratings watch negative.

“The downgrade and ratings watch negative reflect financial flexibility concerns associated with heightened liquidity and refinancing risks under Fitch's revised price deck (WTI of $38/bbl and HH of $1.85/mcf in 2020). Extraction currently faces a challenging capital market environment that may impact the company's ability to redeem the preferred stock due in 2021,” said Fitch in a press release.

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