Moody's boosts Chesapeake Energy

Moody's Investors Service said it upgraded Chesapeake Energy Corp.'s corporate family rating to Ba1 from Ba2, probability of default rating to Ba1-PD from Ba2-PD and senior unsecured notes to Ba2 from Ba3. The speculative grade liquidity rating remains SGL-1. The outlook was changed to stable from positive.

Chesapeake completed the sale of a portion of its Eagle Ford assets in two transactions that closed in March and April. After repaying over $1 billion of borrowings in the first quarter, the company's credit facility was undrawn at March 31.

"Chesapeake's upgrade reflects its solid credit metrics and reduced debt balances," commented Amol Joshi, a Moody's vice president and senior credit officer, in a press release. "Over the last two years, Chesapeake has sharpened its focus on high-return natural gas assets while expanding its Haynesville and Marcellus Shale assets through sizeable acquisitions."

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