S&P Global Downgrades Chesapeake Energy Following Deal
September 13 2019 - 5:06PM
Dow Jones News
By Allison Prang
S&P Global Ratings downgraded multiple ratings for
Chesapeake Energy Corp. (CHK) after the energy firm said it would
exchange a 15% stake in itself for preferred stock and unsecured
notes, the ratings agency said.
S&P lowered the issuer credit rating on the company from B+
to SD, the ratings firm said Friday.
S&P also said it was lowering the issue-level ratings on
many of the notes as part of the stock deal from B+ to D. Those
notes range from 4.875% to 8% and are due between 2022 and
2027.
The ratings firm also said it downgraded its rating from CCC+ to
D for Chesapeake's 5.75% convertible preferred stock.
S&P said it sees "these transactions as distressed" and said
the exchanges come out to about 0.85 on the dollar together.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
September 13, 2019 16:51 ET (20:51 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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