Moody's rates Venoco notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Venoco Inc.'s proposed $150 million of seven-year senior unsecured guaranteed notes, a B3 senior implied rating and an SGL-3 liquidity rating with a stable outlook.

Moody's said Venoco's outlook or ratings could strengthen if it demonstrates sustainable sequential quarter production gains, amply supported production and reserve replacement costs and avoids material additional leverage.

The ratings are restrained by high leverage, Venoco's small size, high unit production, price realizations of roughly $5/barrel below benchmark light sweet oil prices, sizable negative reserve revisions and production and uncertainty concerning how productive increased capital spending will be.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.