Fitch gives Crescent loan BB+, notes BB-

Fitch Ratings said it gave BB+/RR1 ratings to Crescent Energy Finance LLC’s senior secured reserve-based loan credit facility and BB-/RR3 ratings to its senior unsecured bonds. The agency also assigned a B+ issuer default rating to Crescent Energy Finance and Crescent Energy Co.

“Crescent's rating reflects its multi-basin operational scale, historical and forecast leverage between 1x - 1.5x, a conservative hedging program and relatively low decline rate. It also considers the company's below average unit economics, which are likely to modestly improve with the acquisition of assets in the Uinta basin; a significant amount of operations where Crescent is not the operator; and current revolver reliance as a funding source,” Fitch said in a press release.

The outlook is stable.

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