Oil & Gas Sector Leads Moody’s Speculative B3 Default Ratings

Of business sectors in Moody’s speculative grade portfolio, the oil and gas sector continued to lead with the most debt issuers—38 percent of the total between May 1 and June 1.

Five companies dropped off the list, three of which were in the oil and gas sector, the credit ratings agency said in a Friday report. RAAM Global Energy Co. and Denver Parent Corp. are both in default; Sabine Oil & Gas Corp. recently went through a borrowing base redetermination to stave off default.

The June 1 portfolio count of companies with a probability of default rating of B3 Negative shows a steady climb, reaching 206 companies, an increase of 5 percent from May. For the first time since July 2010, when the list was at 205 and dropping names each quarter, it exceeds 200 names.

“Although the list increased by a significant 24 percent on a yearly, basis, the current figure is still lower that its all-time high of 290 companies the credit crises,” Moody’s said.


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.