Fitch gives Ascent Resources notes B

Fitch Ratings said it gave B/RR4 ratings to Ascent Resources Utica Holdings' planned eight-year senior unsecured notes.

Proceeds are intended to reduce borrowings under the revolving credit facility.

“Ascent's rating reflects no material debt maturities until 2024 and expectations of strong FCF over the rating horizon, with proceeds applied to reduce debt. The rating considers moderate leverage, average production scale and a robust hedge book mitigating downside risk. These factors are offset by relatively high firm transportation costs, which results in netbacks slightly lower than the median of its peers,” Fitch said in a press release.

The outlook is stable.

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