Diamondback Energy Upgraded By Moody’s

Diamondback Energy’s corporate family rating has been upgraded to Ba3 from B1 by Moody’s based on the rating agency’s expectation the company will deliver “significant growth” in 2017 while keeping a healthy balance sheet even if oil and natural gas prices remain at current levels.

“Management has exhibited good operating and fiscal discipline since late 2014 by reducing and then ramping up its drilling program and achieving significant organic production and reserves growth while avoiding meaningful increases in debt,” the rating agency said.

Moody’s also upgraded the company’s probability of default rating to Ba3-PD from B1-PD and senior unsecured notes to B1 from B2. Moody’s affirmed the company’s SGL-2 speculative grade liquidity rating,reflecting good liquidity. The rating outlook was revised to stable from positive.