Moody's views Centennial positively

Moody's Investors Service said it changed the outlook to positive from stable and affirmed the ratings of Centennial Resource Production, LLC. Concurrently, Moody's upgraded the senior unsecured rating of Colgate Energy Partners III, LLC to B2 from B3 with a positive outlook, following its merger with Centennial.

The agency said it will withdraw all the other ratings of Colgate, as Centennial is the surviving entity of the merger renamed as Permian Resources Operating, LLC. This rating action concludes the review for possible upgrade of Colgate's ratings initiated on May 20.

"The positive outlook reflects Centennial's increased scale in the Permian basin and improved credit metrics as a result of its merger with Colgate, which has highly complementary assets," commented Thomas Le Guay, a Moody's assistant vice president and analyst, in a press release.

"The successful implementation of cost synergies and further debt reduction to below $2 billion will be key considerations for an upgrade to Ba3," Guay added.

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