Fitch rates Moss Creek loan BB, notes B

Fitch Ratings said it assigned BB/RR1 ratings to Moss Creek Resources, LLC's $935 million senior secured reserve-based lending facility, and B/RR4 ratings to Moss Creek Resources Holdings, Inc. $700 million of 7½% unsecured notes due 2026 and $500 million of 10½% unsecured notes due 2027.

The agency also gave a first-time B long-term issuer default rating to Moss Creek Resources Holdings and Moss Creek Resources, LLC.

“Moss Creek's ratings reflect its Permian asset base with high liquids exposure, forecast positive FCF generation, and Fitch's expectation for continued debt reduction, which should result in mid-cycle gross leverage approaching 1.5x. These factors are partially offset by the company's relatively smaller production size, currently low 12-month hedge coverage, and the company's low PDP reserves and 1P inventory life,” Fitch said in a press release.

The outlook is stable.

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