Oil and gas exploration and production company Range Resources Corp. reached an agreement to acquire Memorial Resource Development Corp. (MRD) for stock and assumption of MRD's debt. We view the transaction as reducing Range's financial leverage due to the use of equity to fund a large portion of the purchase price and adding to the company's geographic diversification. We are affirming our ratings on Range, including the 'BB+' corporate credit rating. The outlook is negative, reflecting our expectation that Range's leverage will be weak for the rating in 2017, but improve thereafter. On May 17, 2016, S&P Global Ratings affirmed its 'BB+' corporate credit rating on Ft. Worth, Texas-based Range Resources Corp. The rating outlook remains negative. Range Resources Corp.
