Fitch rates Permian Resources BB-

Fitch Ratings said it assigned first-time long-term issuer default ratings of BB- to Permian Resources Corp. (PR) and Permian Resources Operating, LLC (Operating). Fitch assigned BB+/RR1 ratings to Operating's senior secured reserve-based lending credit facility and BB-/RR4 rating to the unsecured notes. The outlook is stable.

Fitch removed Colgate Energy Partners III, LLC from rating watch positive and raised the long-term IDR to BB- from B+ with a stable outlook. The agency also affirmed the ratings on the RBL at BB+/RR1, affirmed the senior unsecured notes at BB- and revised the recovery rating to RR4 from RR3.

These actions follow the close of the merger between Centennial Resource Development, Inc. and Colgate, which formed PR on Sept. 1, and PR’s assumption of Colgate's unsecured notes, which rank equally with the new company’s notes, the agency said.

Fitch said it subsequently withdrew all the ratings of Colgate given the reorganization of the entity and are no longer considered to be relevant to the agency's coverage.

“PR's ratings reflect its large, liquids-weighted Delaware asset base following the merger, estimated 15-year inventory of economic drilling locations, positive FCF generation and expectation that proceeds will reduce RBL borrowings in the near-term, clear maturity profile, forecast sub-1.5x mid-cycle leverage metrics and strong hedge book,” Fitch said in a press release.

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