S&P changes Cimarex view to negative

S&P said it affirmed Cimarex Energy Co.’s BBB- long-term issuer credit rating and senior unsecured issue-level ratings and revised the outlook to negative from stable.

“The drop in oil prices will result in weaker-than-expected financial measures for the current rating,” said S&P in a press release.

“The negative outlook on Cimarex reflects weakening financial measures resulting from lower hydrocarbon prices and weaker demand. Additionally, the outlook takes into account weak capital markets in which we expect oil and gas companies’ access to markets could be challenged. However, Cimarex has relatively low debt levels, strong liquidity, and no immediate need to access the capital markets, all of which currently supports the rating,” the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.