latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/s-p-downgrades-range-resources-to-b-outlook-negative-57841812 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

S&P downgrades Range Resources to B; outlook negative

Essential Energy Insights - June 11, 2020

Webinar Replay

Deep Dive on Oil & Gas for Financial Institutions

Essential Energy Insights - May 28, 2020

Essential Energy Insights - May 14, 2020

S&P downgrades Range Resources to B; outlook negative

S&P Global Ratings on March 31 downgraded Range Resources Corp.'s issuer credit rating to B from BB- and on the senior unsecured debt to B+ from BB-. The outlook is negative.

Ratings said it anticipates the company's credit measures to fall below its expectations for the BB- rating over the next two years due to lower oil and gas price assumptions. The rating agency decreased its oil and gas price assumptions after Saudi Arabia and Russia launched an oil price war that tanked commodity prices and exacerbated supply-demand imbalance in the market.

The negative outlook reflects the ways that low gas prices can affect existing covenants and weakened capital market conditions, which could lead to difficulties in refinancing the company's near-term maturities, Ratings wrote on March 31.

Range recently cut its 2020 capital budget to $430 million. While Ratings acknowledged that this measure improves the company's near-term cash conservation, the agency said that loss of production and declining margins translate to lower ratios than would be acceptable for the BB- rating.

Ratings noted that it could lower the rating further if Range Resources fails to address its 2022 and 2023 maturities in a timely fashion or if the company breaches its 2.5x interest coverage, weakening liquidity. Ratings said may revise the outlook to stable under a few potential conditions: if the company proactively address its 2022 and 2023 maturities through secured financing or asset sales should the capital markets allow, or if Range starts creating positive free operating cash flow from higher-than-expected oil and gas prices.

This S&P Global Market Intelligence news article contains information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.