S&P ups Southwestern Energy

S&P said it raised its corporate credit rating on Southwestern Energy Co. to BB from BB-. The outlook is stable.

At the same time, S&P raised the issue-level rating on the company's unsecured debt to BB from BB-. The recovery rating remains 3, indicating an expectation of meaningful (50% to 70%; rounded estimate: 65%, capped) recovery in the event of a payment default.

S&P is also withdrawing its BB+ issue-level rating on the company's secured term loan following repayment.

“The upgrade reflects our assessment that Southwestern's increasing production and higher gas and natural gas liquids price realizations, while maintaining capital spending close to internally generated cash flow, results in improved leverage measures,” S&P said in a news release.

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