Moody’s raises Endeavor Energy

Moody's Investors Service said it upgraded Endeavor Energy Resources, LP's corporate family rating to Caa1 from Caa3, probability of default rating to Caa1-PD from Caa3-PD and the senior unsecured note rating to Caa2 from Ca.

The outlook was changed to stable from negative.

"Endeavor's ratings upgrade reflects the company's significant asset sale proceeds, which have contributed materially to reducing its debt burden, enhanced its liquidity substantially and mitigated the risk of a covenant breach. The asset sales have also proved the value of the company's Midland Basin leasehold acreage which can serve as an additional source of liquidity," Moody's senior analyst Sreedhar Kona said in a news release.

"Endeavor's improved liquidity and revised capital expenditure plan positions the company to increase its production and reserve base in the Midland Basin while maintaining its current credit metrics, a view reflected in our stable outlook."

© 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.