Moody's trims Denbury Resources

Moody's Investors Service said it downgraded Denbury Resources Inc.'s corporate family rating to Caa2 from B3, probability of default rating to Caa2-PD from B3-PD, ratings on its senior secured second-lien debt to Caa2 from B3 and ratings on its senior subordinated debt to Ca from Caa2. The speculative grade liquidity rating was downgraded to SGL-4 from SGL-2. The outlook has been revised to negative from stable.

The downgrade of Denbury's rating to Caa2 reflects Moody's expectation its revenues will decline in 2021 and the uncertainty over the company's ability to refinance its debt maturing in 2021. Denbury generated positive free cash flow in 2019, but may not in 2020 at lower current oil prices.

The negative outlook reflects the uncertainty over the ability of Denbury to refinance its debt maturing in 2021 on a timely basis and on favorable terms.

S&P revises Genting view to negative

S&P said it revised the outlook for Genting Bhd. and Resorts World Las Vegas to negative from stable.

“We revised the outlook on Genting to negative to reflect our view that Genting's revenue and EBITDA will drop by 20%-25% and 25%-30% respectively in 2020 because of the ongoing Covid-19 outbreak. This comes at a time when we forecast near-term capital expenditure (capex) to peak in 2020, with Resorts World Las Vegas (RWLV) set to open in the summer of 2021 in the U.S., and our expectation that Genting Singapore (GENS) will start its Singapore dollars (S$) 4.5 billion expansion plan,” said S&P in a press release.

S&P affirmed the BBB+ rating on Genting and the BBB ratings on Resorts World Las Vegas and its debt.

S&P rates Cleveland-Cliffs notes BB-

S&P said it rated Cleveland-Cliffs Inc.’s new $725 million of 6¾% senior secured notes BB-.

Cliffs had planned to issue $400 million in senior unsecured notes and $550 million in senior secured notes. Instead, the company issued $725 million in senior secured notes, with the difference (about $225 million) expected in the form of an additional drawing under the new $2 billion revolving credit facility.

Cleveland-Cliffs revised its notes issuances in connection with the acquisition of all shares of AK Steel Holding Corp.’s common stock. Cliffs' plans to exchange $270 million and $392 million in AK Steel senior unsecured notes due 2025 and 2027 respectively, are unchanged.

The outlook is stable.

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