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S&P lowers Southwestern Energy
S&P said it lowered the corporate credit rating on Southwestern Energy Co. to BB- from BB+.
The agency also said it lowered the ratings on the company's senior unsecured debt to BB- from BB+.
The recovery rating on the company's unsecured debt remains at 3, indicating 50% to 70% expected default recovery.
The outlook is negative.
The downgrades reflect revised revenue and cash flow estimates on the company and an expectation of weaker credit metrics over the course of 2016 and 2017, S&P said.
The agency said it lowered expectations for 2016 production due to the lack of drilling activity and reduced the estimate for the company's realized natural gas price based on actual first-quarter results.
The negative outlook considers a view that the company's liquidity could deteriorate unless it is able to raise external capital or sell additional assets to fund repayment of debt maturities in 2018, S&P said.
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