Fitch rates Southwestern Energy loan BBB-

Fitch Ratings said it assigned a BBB- rating to Southwestern Energy Co.'s $750 million senior unsecured term loan.

The term loan has a maturity date of Nov. 17, 2018.

The proceeds will be used to refinance outstanding commercial paper and credit facility borrowings and for general corporate purposes, the agency said.

Fitch said it recognizes that the issuance improves available liquidity under Southwestern's existing commercial-paper program and credit facility and does not raise current gross debt levels.

The ratings are supported by the company’s credit-conscious financial policy and strong operating history, which resulted in the achievement of drilling efficiencies and competitive production, the agency said.

Offsetting factors include the company's nearly exclusive natural-gas focus that results in lower netbacks per barrel of oil equivalent relative to liquid peers, Fitch said, and its limited geographic diversity.

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