Fitch places Double Eagle III on positive watch

Fitch Ratings said it placed Double Eagle III Midco 1 LLC's B long-term issuer default rating and BB-/RR2 senior unsecured notes ratings on Rating Watch positive.

The positive Rating Watch follows the announcement that Pioneer Natural Resources (Pioneer; BBB+/stable) plans to acquire DoublePoint Energy and its wholly owned subsidiary Double Eagle.

“Fitch expects to resolve the Rating Watch upon completion of the transaction, which could result in a multi-notch upgrade, but depends on Pioneer's treatment of the Double Eagle debt. If the acquisition fails to close, the Rating Watch Positive will be removed, with Double Eagle's rating likely to remain at B,” Fitch said in a news release.

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