Moody’s changes SM Energy to stable

Moody's Investors Service said it changed SM Energy Co.’s outlook to stable from negative and affirmed the B2 corporate family rating, B3 senior unsecured note rating and SGL-3 speculative grade liquidity rating.

"The outlook change reflects SM Energy's reduced covenant violation risks through 2017 following amendments to its credit agreement in April 2016," Moody's assistant vice president and analyst Sajjad Alam said in a news release.

"The amended financial covenants will ensure continued access to a substantial source of external liquidity even in a low energy price environment. The significant reduction in the borrowing base during spring redetermination also reduces the risk of another major cut in the fall."

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