Fitch cuts Apache to BB+

Fitch Ratings said it downgraded Apache Corp.’s long-term issuer default rating to BB+ from BBB and downgraded its senior unsecured ratings to BB+/RR4 from BBB.

“The main driver for the downgrade is weaker debt/EBITDA leverage metrics, stemming from the combination of low commodity prices and a lower production outlook, and to a lesser degree, concerns about recent reductions in liquidity. The rating also reflects concerns about the duration of the downturn in oil prices, which, if extended, has the potential to keep APA’s metrics lower for longer and result in additional downward pressure on the rating,” Fitch said in a press release.

The agency revised the outlook to stable from negative.

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