Fitch rates Lonestar loan BB-, notes B+

Fitch Ratings said it assigned long-term issuer default ratings of B- to Lonestar Resources US, Inc. and Lonestar Resources America, Inc.

The agency also assigned a BB-/RR1 rating to Lonestar Resources America’s senior secured bank credit facility and a B+/RR2 rating to the senior unsecured notes.

The outlook is stable.

“Lone's rating reflects its small, liquid-focused production profile (11.1 mboe/d [79% liquids] as of June 30, 2018), competitive cash netbacks, improving credit metrics, adequate liquidity position, and recently extended debt maturities profile,” Fitch said in a news release.

“Another consideration is the company's reestablishment of operational momentum and favorable well results leading to a mid-year increase of 2018 production growth guidance to 68% (mid-point).”

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