Moody's boosts Diamondback Energy

Moody's Investors Service said it boosted Diamondback Energy, Inc.'s senior unsecured notes to Baa3 from Ba1 and revised the company's outlook to stable from positive.

Moody's concurrently withdrew Diamondback's Ba1 corporate family rating, Ba1-PD probability of default rating and SGL-1 speculative grade liquidity rating.

"The upgrade to investment grade recognizes Diamondback's consistent track record of conservative financial policies, low financial leverage, as well as its excellent operating performance and prudent capital allocation through various commodity price cycles," said Sajjad Alam, a Moody's vice president, in a press release.

"We expect the company to maintain its top-quartile cost structure and cash margins in the industry and take advantage of high global-energy prices to further strengthen its financial position and reduce carbon transition risk," Alam said.

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