Moody's rates Ascent notes Caa1

Moody's Investors Service said it gave a Caa1 rating to Ascent Resources Utica Holdings, LLC's planned $350 million of senior unsecured notes. Ascent's other ratings including its B2 Corporate Family Rating (CFR) and positive outlook are unchanged.

“Ascent's debt load is unchanged due to this transaction and hence the transaction is deemed credit neutral; however, this will increase Ascent's long-term debt. The proposed unsecured notes are rated Caa1 consistent with the existing notes rating of Caa1, two notches below the CFR, owing to the priority claim of the revolver and the second-lien term loan to the company's assets ahead of the notes,” Moody’s said in a press release.

The proceeds will be used to partially repay the borrowings under the company's borrowing-base revolving credit facility.

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