Fitch revises Southwestern Energy view to negative

Fitch Ratings said it revised the outlook for Southwestern Energy Co. to negative from stable. Fitch also affirmed the long-term issuer default rating at BB and the BBB-/RR1 rating for the senior secured revolving credit facility and the BB/RR4 rating for the senior unsecured notes.

“The negative outlook reflects the impact of weak commodity prices that could drive the company's leverage profile outside of rating tolerances. Fitch realizes management's current hedge position mitigates near-term price risk and views the company's development shift towards liquids favorably as it helps to offset the impact of weaker natural gas prices. Fitch anticipates resolving the outlook within 12-18 months subject to management's ability to maintain forecasted leverage at around 3x and communicate a capital plan that supports FCF neutrality in 2021,” Fitch said in a press release.

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