Moody's Downgrades Swift Energy's Ratings

NEW YORK (AP) — Moody's Investors Service on Friday downgraded Swift Energy Co.'s junk corporate family and default ratings, citing the company's dwindling performance.

The ratings agency lowered the oil and natural gas producer's corporate family rating to B2 from Ba3, and its default rating to B3 from B1. It also cut the company's senior unsecured rating to B3 from B1.

Moody's said the downgrade reflects the Houston-based company's deteriorating operating performance, especially its continued high and unsustainable costs trends, and growing financial leverage.

The company's B2 rating is supported by its scale and its liquidity that appears to be adequate, according to Moody's. The company has a $400 borrowing base revolver with adequate liquidity.

Shares of Swift Energy added 90 cents, or 11 percent, to $9.07 in afternoon trading.