Moody’s lowers Stone Energy view to stable

Moody’s Investors Service said it revised Stone Energy Corp.’s outlook to stable from positive.

The agency also said it affirmed Stone’s B2 corporate family rating, B2-PD probability of default rating, B3 senior unsecured notes rating and SGL-2 speculative grade liquidity rating.

The outlook change reflects Stone’s more measured pace of capital investments and minimal production growth through 2016, Moody’s said.

Low commodity prices over an extended period will limit Stone’s ability to boost cash flow, add reserves and strengthen its balance sheet, the agency added.

Stone’s ratings are constrained by its limited scale, short PD reserve life and cash flow concentration in the Gulf of Mexico, Moody’s said.

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