Rating Action:
Moody's downgrades MEMP's PDR to D-PD on bankruptcy filing
Global Credit Research - 01 Feb 2017
Approximately $1.1 billion of rated debt affected
New York, February 01, 2017 -- Moody's Investors Service downgraded Memorial Production Partners LP's (MEMP) Probability of Default Rating (PDR) to D-PD from Ca-PD/LD, following the company's announcement in January that it has voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.
Concurrently, Moody's affirmed MEMP's Corporate Family Rating (CFR) of Ca and unsecured notes rating of C. The outlook is negative.
A complete list of rating actions is as follows:
Issuer: Memorial Production Partners LP.
Downgrades:
..Probability of Default Rating, Downgraded to D-PD from Ca-PD/LD
Affirmations:
.Corporate Family Rating, Affirmed at Ca
.Senior Unsecured Notes, Affirmed at C (LGD5)
RATINGS RATIONALE
The downgrade of MEMP's PDR to D-PD is a result of the bankruptcy filing. MEMP's other ratings have been affirmed, which reflects Moody's view on the potential overall family recovery and senior notes recovery.
Shortly following this rating action, Moody's will withdraw all ratings for the company consistent with Moody's practice for companies operating under the purview of the bankruptcy courts wherein information flow typically becomes much more limited. (Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com)
The principal methodology used in these ratings was Global Independent Exploration and Production Industry published in December 2011. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
Memorial Production Partners LP, headquartered in Houston, TX is a publicly traded partnership engaged in the acquisition, production and development of oil and natural gas properties in the United States.
Moody's downgrades MEMP's PDR to D-PD on bankruptcy filing
Global Credit Research - 01 Feb 2017
Approximately $1.1 billion of rated debt affected
New York, February 01, 2017 -- Moody's Investors Service downgraded Memorial Production Partners LP's (MEMP) Probability of Default Rating (PDR) to D-PD from Ca-PD/LD, following the company's announcement in January that it has voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.
Concurrently, Moody's affirmed MEMP's Corporate Family Rating (CFR) of Ca and unsecured notes rating of C. The outlook is negative.
A complete list of rating actions is as follows:
Issuer: Memorial Production Partners LP.
Downgrades:
..Probability of Default Rating, Downgraded to D-PD from Ca-PD/LD
Affirmations:
.Corporate Family Rating, Affirmed at Ca
.Senior Unsecured Notes, Affirmed at C (LGD5)
RATINGS RATIONALE
The downgrade of MEMP's PDR to D-PD is a result of the bankruptcy filing. MEMP's other ratings have been affirmed, which reflects Moody's view on the potential overall family recovery and senior notes recovery.
Shortly following this rating action, Moody's will withdraw all ratings for the company consistent with Moody's practice for companies operating under the purview of the bankruptcy courts wherein information flow typically becomes much more limited. (Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com)
The principal methodology used in these ratings was Global Independent Exploration and Production Industry published in December 2011. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
Memorial Production Partners LP, headquartered in Houston, TX is a publicly traded partnership engaged in the acquisition, production and development of oil and natural gas properties in the United States.
