Moody’s downgrades Sheridan, loans to B2

Moody's Investors Service said it downgraded each of Sheridan Investment Partners I, LLC's, Sheridan Production Partners I-A, LP's and Sheridan Production Partners I-M, LP's corporate family ratings to B2 from B1 and probability of default ratings to B3-PD from B2-PD.

The senior secured term loans were also downgraded to B2 from B1.

The outlook was changed to negative from stable for each entity.

"Sheridan's downgrades are driven by its poor asset coverage, as reflected in the borrowing base to loan value, and its weakened liquidity," Moody's senior analyst Sreedhar Kona said in a news release.

"The negative outlook reflects Moody's view that the weak commodity price outlook could lead to a borrowing base deficiency and exacerbate Sheridan's liquidity stress."

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