Moody’s ups Comstock, rates notes Caa1

Moody’s Investors Service said it upgraded Comstock Resources, Inc.'s corporate family rating to B3 from Caa2 and its probability of default rating to B3-PD from Caa2-PD. The outlook is stable.

Concurrently, the agency assigned a Caa1 rating to Comstock Escrow Corp.'s proposed $850 million of senior notes due 2026.

Moody's affirmed the speculative grade liquidity rating at SGL-3.

Comstock is issuing the new bonds in conjunction with its new $700 million borrowing base RBL revolving credit facility due 2023 (unrated). Proceeds will be used to refinance existing debt.

Completion of the financing transaction requires that Bakken assets are contributed under an agreement with Arkoma Drilling, LP and Williston Drilling, LP in exchange for new common stock of Comstock.

The agency said the upgrade of Comstock's corporate family rating is predicated on Moody's expectation that the proposed asset contribution transaction will close.

“This transaction will meaningfully strengthen the company's balance sheet and liquidity thereby positioning the company to benefit from strong prospects for production growth,” the agency said in a news release.

Moody’s upgrades RBS debt

Moody's Investors Service said it upgraded the long-term senior unsecured debt ratings of Royal Bank of Scotland Group plc to Baa2 from Baa3 and the short-term commercial paper ratings to P-2 from P-3.

The agency changed the outlook to positive from stable on the senior unsecured debt and affirmed all ratings of NatWest Markets plc, NatWest Markets NV, National Westminster Bank plc, Royal Bank of Scotland plc and Ulster Bank Ltd.

At the same time the agency changed the outlook to positive from stable on the senior debt and deposit ratings of NatWest Markets and NatWest Markets NV, and changed the outlook to positive from stable on the deposit rating of NatWest Bank, Royal Bank of Scotland and Ulster Bank.

Moody’s said the upgrade reflects the stronger standalone credit profile of the group, as well as an expectation that the group's profitability will increase in the medium-term as it has settled major legal disputes and continues its multi-year restructuring, leading to a group notional baseline credit assessment of baa2.

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