Moody’s ups Alta Mesa, notes

Moody's Investors Service said it upgraded Alta Mesa Holdings, LP's corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD, senior unsecured notes to B3 from Caa1 and speculative grade liquidity rating to SGL-2 from SGL-3.

The outlook was revised to stable.

This concludes the review for upgrade that was initiated on Aug. 17, 2017 following the company's announcement to merge with Silver Run Acquisition Corp. II (SLRU) and Kingfisher Midstream, LLC. The merger closed on Feb. 9.

"This transformative transaction will enable Alta Mesa to significantly accelerate its development efforts in the STACK play, lower midstream gathering, processing and transportation costs, and gain broader access to capital markets," Moody's senior analyst Sajjad Alam said in a news release.

"Large cash contribution from new owners has facilitated debt reduction and augmented liquidity to comfortably fund the 2018 capital program."

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