Moody’s drops Swift Energy, notes

Moody's Investors Service said it downgraded Swift Energy Co.’s corporate family rating to B2 from B1 and its senior unsecured notes rating to B3 from B2.

The agency also lowered Swift's speculative grade liquidity rating to SGL-4 from SGL-2 and changed the outlook to negative from stable.

The downgrade is the result of Moody's expectation that the company's financial metrics will deteriorate substantially into 2016 and its liquidity will be pressured under the stress of weak energy commodity prices.

"Swift's downgrade reflects the impact of substantially reduced oil and natural gas prices on the company's cash flow and credit metrics as its commodity price hedges roll-off following the first quarter of 2015," Moody's vice president Andrew Brooks said in a news release.

"By dramatically curtailing 2015's capital spending, Swift can stabilize its liquidity position, which Moody's regards as weak, but recent production gains that had underpinned its ratings will be reversed."

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