Lower oil and natural gas prices pushed Moody’s Investor Services’ Liquidity Stress Index (LSI) to its highest level in almost five years, with the energy LSI at its highest level since January 2010, the credit ratings agency said Wednesday.
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Some Interstate Pipes Risk Downgrades, Ratings Agency Says
Fitch Ratings warned Thursday that several domestic interstate natural gas pipelines could face rating downgrades if they lose their competitive advantage or face recontracting pressures as they try to adjust to shifting forces of supply and demand.
Fitch: Interstate Gas Pipelines Risk Downgrades
Fitch Ratings warned Thursday that several domestic interstate natural gas pipelines could face rating downgrades if they lose their competitive advantage or face recontracting pressures as they try to adjust to shifting forces of supply and demand.
Calpine May Sell Some or All of Its 389 Bcfe in Proved Reserves
Under pressure to come up with cash to pay down debt following credit ratings downgrades last week by Moody’s and Standard and Poor’s, Calpine Corp. said last week that it is considering selling all or a portion of its U.S. natural gas assets, which include about 389 Bcfe of proved gas reserves.
Calpine May Sell Some or All of Its 389 Bcfe in Proved Reserves
Under pressure to come up with cash to pay down debt following credit ratings downgrades last week by Moody’s and Standard and Poor’s, Calpine Corp. said Tuesday that it is considering selling all or a portion of its U.S. natural gas assets, which include about 389 Bcfe of proved gas reserves.
SEC Investigation Rumored After El Paso Cuts Reserves 41%
Rumors of a possible Securities and Exchange Commission (SEC) inquiry, credit ratings downgrades and dire analyst forecasts pummeled El Paso Corp.’s share price last week, after the Houston-based company revised its proved oil and gas reserves downward by 41%. After beginning the week at $8.81, El Paso shares were hovering just above $7 a share on Friday.
Moody’s Downgrades SEMCO Because of High Leverage, Low Profitability
Moody’s Investors Service downgraded the ratings of Port Huron, MI-based gas utility company SEMCO Energy Inc. to Ba2 from Baa3 and said it was continuing a review for possible further downgrade because of the company’s “very high leverage, weak capitalization, low profitability and cash flow relative to its debt and refinancing risk.” About $534 million in debt was affected.
Moody’s Downgrades SEMCO Because of High Leverage, Low Profitability
Moody’s Investors Service downgraded the ratings of Port Huron, MI-based gas utility company SEMCO Energy Inc. to Ba2 from Baa3 and said it was continuing a review for possible further downgrade because of the company’s “very high leverage, weak capitalization, low profitability and cash flow relative to its debt and refinancing risk.” About $534 million in debt was affected.
Power Execs Don’t See Industry Rebound Happening Next Year
Having been eyewitnesses to a wave of debt rating downgrades, anemic wholesale power prices and the collapse of the once-mighty Enron over the past year, a majority of power industry executives recently surveyed don’t expect the sector to rebound until 2004 at the earliest.
S&P Cuts El Paso Credit Ratings, Warns of Further Downgrades
El Paso Corp.’s credit ratings teeter on the edge of junk status after a downgrade by Standard & Poor’s Ratings Services on Tuesday. S&P said El Paso remains on CreditWatch with negative implications and could fall deep into junk levels if FERC sides with an administrative law judge in concluding that the company manipulated the California natural gas market.