Moody’s upgrades PDC Energy

Moody’s Investors Service said it upgraded PDC Energy’s corporate family rating to Ba2 from Ba3 and its probability of default rating to Ba2-PD from Ba3-PD. Moody’s also upgraded ratings of its senior unsecured notes and convertible notes to Ba3 from B1. PDC’s speculative grade liquidity rating was changed to SGL-1 from SGL-2.

The upgrades conclude the review started Aug. 27.

Moody’s also upgraded SRC Energy Inc.’s senior unsecured notes rating to Ba3 from B3. SRC’s B1 CFR and B1-PD PDR were withdrawn. The outlook remains stable. These actions follow the closing of PDC’s acquisition of SRC on Jan. 14 when PDC merged with SRC.

“PDC’s ratings upgrade reflects increased scale in the DJ Basin and improved credit metrics as a result of the company’s acquisition of SRC, which has highly complementary assets and meaningfully increases reserves and production,” said Arvinder Saluja, a Moody’s vice president, in a press release.

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