Moody’s drops Warren Resources to C

Moody's Investors Service said it downgraded Warren Resources Inc.'s corporate family rating to C from Ca and probability of default rating to C-PD/LD from Ca-PD following Warren's non-payment of interest on the unsecured notes.

Concurrently the agency affirmed the unsecured notes rating of C and the speculative grade liquidity rating at SGL-4.

The outlook remains negative.

Warren elected not to make the roughly $7.5 million interest payment due on Feb. 1 on its unsecured notes. The applicable 30-day grace period for such interest payment has expired, and consequently an event of default under the indenture governing such notes has occurred and is continuing.

As of March 31, Warren's first-lien creditors held debt of about $235 million in principal amount, second-lien creditors held debt of about $52 million in principal amount, and investors held roughly $167 million principal amount of Warren's unsecured senior notes.

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