Crescent Energy’s credit report looks solid after the company said May 16 it would buy Eagle Ford E&P SilverBow Resources for $2.1 billion.

Crescent said Moody’s Ratings, Fitch Ratings and S&P Global Ratings took positive ratings actions on the company pending the close of the SilverBow deal.

“In their releases, the agencies recognized the transaction's compelling strategic and financial rationale, citing potential for improved scale with complementary Eagle Ford assets, stable free cash flow generation and balance sheet strength,” Crescent said in a May 22 press release.

Among the ratings groups:

  • Moody's affirmed Crescent's Ba3 Corporate Family Rating (CFR) and B1 senior unsecured notes' ratings, and its stable outlook;
  • Fitch placed Crescent's Long-term Issuer Default Ratings (IDRs) of 'B+' on Rating Watch Positive (RWP) and affirmed the company's first-lien secured reserve-based loan facility (RBL) at 'BB+'/ 'RR1' and its senior unsecured notes at 'BB-'/ 'RR3’; and
  • S&P affirmed Crescent's B+ rating and revised its outlook to Positive, reflecting the combined company's increased size, scale and lower pro-forma cost structure once the transaction has closed.

Crescent’s transaction is subject to customary closing conditions, including approvals by regulatory agencies and the shareholders of each company. The deal is targeted to close by the end of the third quarter.