{"id":6567,"date":"2012-05-15T15:32:18","date_gmt":"2012-05-15T20:32:18","guid":{"rendered":"http:\/\/stateimpact.npr.org\/oklahoma\/?p=6567"},"modified":"2012-05-15T15:32:18","modified_gmt":"2012-05-15T20:32:18","slug":"sp-cuts-chesapeakes-credit-rating-over-mounting-turmoil","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/oklahoma\/2012\/05\/15\/sp-cuts-chesapeakes-credit-rating-over-mounting-turmoil\/","title":{"rendered":"S&#038;P Cuts Chesapeake\u2019s Credit Rating Over \u2018Mounting Turmoil\u2019"},"content":{"rendered":"<div>\n<div id=\"attachment_6569\"  class=\"wp-caption module image right\" style=\"max-width: 300px;\"><a class=\"fancybox\" title=\"Chesapeake Energy's Oklahoma City campus. \" href=\"http:\/\/stateimpact.npr.org\/oklahoma\/files\/2012\/05\/chesapeake.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-6569\" title=\"Chesapeake Energy\" src=\"http:\/\/stateimpact.npr.org\/oklahoma\/files\/2012\/05\/chesapeake-300x190.jpg\" alt=\"\" width=\"300\" height=\"190\" \/><\/a><\/p>\n<p class=\"wp-media-credit\">Joe Wertz \/ StateImpact Oklahoma<\/p>\n<p class=\"wp-caption-text\">Chesapeake Energy&#39;s Oklahoma City campus.<\/p>\n<\/div><p>Standard & Poor\u2019s has once again <a href=\"http:\/\/www.google.com\/hostednews\/ap\/article\/ALeqM5jKWqpfdNpLeBAaVvigsINqq-gmJA?docId=e5e60abb5ddc47e1af3861f51b8bd2c3\">downgraded<\/a> Chesapeake Energy\u2019s credit rating.<\/p><p>In late April, the ratings agency <a href=\"http:\/\/stateimpact.npr.org\/oklahoma\/2012\/04\/26\/sp-downgrades-chesapeake-credit-rating-over-unusual-ceo-perk\/\">lowered<\/a> the company\u2019s rating to \u201cBB\u201d from \u201cBB+.\u201d Today, S&P lowered the rating another notch, to \u201cBB-.\u201d<\/p>\n<blockquote><p>Chesapeake Energy Corp. has suffered from mounting turmoil over revelations about its CEO&#8217;s personal financial transactions, and, given revised production expectations, external funding needs are likely to be higher over the next two years than we previously assumed, wrote S&P credit analyst Scott Sprinzen.<\/p><\/blockquote><p><!--more--><\/p><p>The ratings agency also views Chesapeake\u2019s liquidity as \u201cless than adequate,\u201d and is worried about potential \u201csetbacks\u201d in funding its transition from natural gas to oil.<\/p><p>On May 11, Chesapeake announced it would <a href=\"http:\/\/www.chicagotribune.com\/business\/sns-rt-us-chesapeake-price-talkbre84d0yl-20120514,0,5247406.story\">borrow<\/a> $3 billion from Goldman Sachs and Jeffries Group. The company is using the bridge loan to offset a cash-flow shortfall and to repay current borrowings while it <a href=\"http:\/\/www.ogj.com\/articles\/2012\/05\/chesapeake-confident-asset-sales-will-help-ease-financial-concerns.html\">completes sales<\/a> of assets in the Permian basin and the Mississippi Lime.<\/p><p>Chesapeake\u2019s stock dropped on news of the S&P downgrade. Shares of the company, which had ticked up on rumors of a potential investment by billionaire investor Carl Icahn, fell to $14.66 by 4 p.m.<\/p><p>The company\u2019s stock fell to an <a href=\"http:\/\/www.foxbusiness.com\/markets\/2012\/05\/11\/chesapeake-energy-vale-among-stocks-falling-to-annual-lows-friday\/\">annual low<\/a> last Friday.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Standard &#038; Poor\u2019s has once again downgraded Chesapeake Energy\u2019s credit rating.In late April, the ratings agency lowered the company\u2019s rating to \u201cBB\u201d from \u201cBB+.\u201d Today, S&#038;P lowered the rating another notch, to \u201cBB-.\u201d Chesapeake Energy Corp. has suffered from mounting turmoil over revelations about its CEO&#8217;s personal financial transactions, and, given revised production expectations, external [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":6569,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[301],"tags":[360,275],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/6567"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/comments?post=6567"}],"version-history":[{"count":1,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/6567\/revisions"}],"predecessor-version":[{"id":6576,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/6567\/revisions\/6576"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/media\/6569"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/media?parent=6567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/categories?post=6567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/tags?post=6567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}