Moody's ups Laredo, rates notes B2

Moody's Investors Service said it upgraded Laredo Petroleum, Inc.'s senior unsecured rating to B2 from B3 and speculative grade liquidity rating to SGL-2 from SGL-3, and assigned a B2 rating to the company's proposed $350 million senior unsecured notes.

At the same time, the agency affirmed Laredo's B1 corporate family rating and B1-PD probability of default rating.

The outlook is stable.

"This note offering will boost Laredo's liquidity and help partially cover the large funding gap that is projected for 2014," Moody's analyst Sajjad Alam said in a news release. "Through cash flow and cash on hand, Laredo should now have financing in place to cover the vast majority of 2014's $1 billion capex budget, with secured borrowings kept to a minimum over the next year."

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