S&P lifts Southwestern Energy view to positive

S&P said it affirmed the BB- corporate credit rating on Southwestern Energy Co. and revised the outlook to positive from stable.

The rating on the company's secured term loan remains at BB+ with a 1 recovery rating, indicating 90% to 100% expected default recovery.

The rating on the company's unsecured debt remains at BB- with a 3 recovery rating, indicating 50% to 70% expected default recovery.

The outlook revision reflects an assessment that Southwestern's increasing natural gas production and higher gas price realizations will result in improved leverage measures S&P said.

The company is addressing upcoming debt maturities, which are viewed as favorable for credit quality, the agency said.

Southwestern is nearly doubling its capital budget this year, focusing on drilling its properties in northeast and southwest Appalachia, S&P added.

The company is expected to increase its production about 3% this year after dropping in 2016, the agency said.

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