Moody's cuts Quicksilver

Moody's Investors Service said it downgraded the corporate family rating of Quicksilver Resources, Inc. to B2 from B1, the senior unsecured notes ratings to B3 from B2 and subordinated notes rating to Caa1 from B3.

"The downgrade of Quicksilver's corporate family rating to B2 from B1 is reflective of weaker earnings and profitability driven by high exposure to low natural gas and NGL prices," Moody's vice president and senior analyst Michael Somogyi said in a news release.

"In addition, Quicksilver's delayed MLP funding and associated debt reduction plans extend its high leverage profile and elevate liquidity concerns as lower production volumes and resulting decline in EBITDA are expected lead to tighter covenant headroom and potential negative borrowing base redetermination," Somogyi added in the release.

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