Moody's assigns Cabot notes Baa3

Moody's Investors Service said it assigned Cabot Oil & Gas Corp.'s planned senior unsecured notes a Baa3 rating.

“Cabot's Baa3 senior unsecured rating incorporates the benefits from its pending merger with Cimarex, including its size and scale, conservative financial policies through various commodity price cycles and a disciplined management team. The company's excellent liquidity and disciplined drilling strategy offers the company a high degree of financial flexibility. Both Cimarex's and Cabot's historically conservative reserves booking policy shields the company from reserves volatility through commodity cycles,” Moody’s said in a press release.

Cabot is offering to exchange up to $2 billion of its notes for Cimarex Energy’s notes.

The outlook is positive.

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