Research Update: Moss Creek Resources Holdings Inc. Upgraded To 'B-' On Improved Credit Ratios And Free Cash Flow; Outlook Stable

S&P Global Ratings recently raised its crude oil price assumption to $55 per barrel (bbl) for the remainder of 2021 and 2022, up from $45/bbl, which will support improved leverage and cash flow metrics for U.S.-based oil and gas exploration and production (E&P) company Moss Creek Resources. Therefore, we raised our issuer credit rating on Moss Creek to 'B-' from 'CCC+'. At the same time, we raised our rating on the company's unsecured notes to 'B' from 'B-' (recovery rating: '2') The stable outlook reflects our expectations that Moss Creek will generate free cash flow while maintaining funds from operations (FFO) to debt in the low to mid 20% range over the next two years. The stable outlook reflects our

...- S&P Global Ratings recently raised its crude oil price assumption to $55 per barrel (bbl) for the remainder of 2021 and 2022, up from $45/bbl, which will support improved leverage and cash flow metrics for U.S.-based oil and gas exploration and production (E&P) company Moss Creek Resources. - Therefore, we raised our issuer credit rating on Moss Creek to 'B-' from '###+'. - At the same time, we raised our rating on the company's unsecured notes to 'B' from 'B-' (recovery rating: '2') - The stable outlook reflects our expectations that Moss Creek will generate free cash flow while maintaining funds from operations (FFO) to debt in the low to mid 20% range over the next two years....

Research Update