Moody’s could lift Memorial Resource

Moody's Investors Service said it affirmed Range Resources Corp.’s Ba3 corporate family rating, Ba3 rated senior unsecured notes and B1 rated subordinated notes.

Range's speculative liquidity rating was changed to SGL-3 from SGL-2.

The outlook remains negative.

At the same time, Moody's placed Memorial Resource Development Corp.'s (MRD) B2 corporate family rating, B2-PD probability of default rating and Caa1 rated senior unsecured notes under review for upgrade. The SGL-2 rating remains unchanged.

Moody’s said the actions were prompted by Range's announcement that it will acquire Memorial Resource in an all-stock transaction valued at $4.4 billion, inclusive of Memorial Resource’s net debt of $1.1 billion at March 31. Range's senior management team will run the combined company, and Memorial Resource will have the right to nominate one independent director from Memorial Resource to Range's board of directors. Closing is expected in the second half of 2016.

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