Fitch Ratings on Aug. 30 lowered Appalachian shale driller Antero Resources Corp.'s issuer default rating and senior unsecured debt to BB+ from BBB-, with a stable outlook.
Fitch said the downgrade reflects the sharp decline in NGL and natural gas prices, which puts Antero in a difficult spot because it is highly levered to NGLs compared to other Appalachian drillers.
The ratings downgrade for Antero affected $3.6 billion of the company's debt, Fitch said in the report. Furthermore, while Antero does not have any maturities due immediately, it has approaching maturities of $2.85 billion, with $1 billion of notes due 2021.
On Aug. 23, S&P Global Ratings also lowered Antero's issuer credit and senior unsecured ratings to BB from BB+ along with those of two other shale gas drillers. The company's downgrade comes in the midst of declining expectations for natural gas and NGL prices across Appalachia.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
