Moody’s raises Strathcona

Moody's Investors Service said it upgraded Strathcona Resources Ltd.'s family rating to B1 from B2, probability of default rating to B1-PD from B2-PD but affirmed the B3 rating on the senior unsecured notes. The agency changed the outlook to stable from positive.

"The upgrade reflects our expectation that Strathcona will sustain sufficient liquidity to repay its term loan by February 2024, leading to stronger metrics and better financial flexibility," said Whitney Leavens, a Moody's analyst, in a press release.

"We expect the company to remain focused on further debt reduction until reaching its C$2.5 billion net debt target," she added.

The outlook mirrors the position the company’s metrics and liquidity will improve as it repays its debt, Moody’s said.

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