Moody’s: Swift Energy outlook negative

Moody's Investors Service said it affirmed Swift Energy Co.’s Caa1 corporate family rating and Caa2 senior unsecured notes rating, and lowered the speculative grade liquidity rating to SGL-4 from SGL-3.

The outlook was changed to negative from stable.

These actions were taken as a result of Swift's inability to close on a new proposed first-lien debt issuance, through which it had intended to bolster its constrained liquidity position.

The B2 rating on the proposed first-lien debt transaction was withdrawn.

"Having been unable to raise incremental liquidity through a newly proposed first lien term loan that did not close, Swift will labor under constrained liquidity unless it is able to source liquidity through alternative measures, which could be limited and time consuming to transact," Moody's vice president Andrew Brooks said in a news release.

"Following several years of minimal production growth, liquidity constraints will pose a challenging test of Swift's ability to generate production increases and execute on improved capital productivity under difficult commodity price conditions."

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