- Chesapeake Energy (NYSE:CHK) is on the cusp of gaining an investment grade rating for the first time after announcing yesterday that it was selling natural gas and oil shale fields for nearly $5.4B.
- Moody’s and S&P both gave “positive” outlooks on CHK’s ratings which are one step from investment grade on each firm’s ratings scale.
- Yesterday's deal will provide CHK "with sufficient wherewithal to reduce financial leverage to a greater extent than assumed in our base-case scenario,” S&P says, adding that an upgrade could result if debt is reduced by more than $5B.
- CHK had ~$16.7B in total debt and preferred stock at the end of June.