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Fitch rates Civitas Resources notes BB
Fitch Ratings said it assigned BB/RR4 ratings to Civitas Resources, Inc.'s planned senior unsecured notes due 2030.
The agency upgraded Civitas’ issuer and senior unsecured ratings to BB from BB- on Aug. 4.
Civitas intends to use the notes to help fund the cash portion of the recently announced $2.1 billion acquisition of Vencer Energy.
“The announced acquisition fits within Civitas' current positive outlook. The transaction will increase the company's production scale and proved reserves in the Permian and is expected to be cash flow accretive. Civitas also maintains clear headroom under Fitch's leverage sensitivity through the credit-neutral funding mix of equity and debt. Fitch notes there is some additional execution risk for the company in the near term given its status as a new operator within the Permian, but believes this is offset by the long-term benefits of the transaction,” the agency said in a press release.
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