Swift Energy announced its borrowing base and commitment amount under its revolving credit facility to be $300 million, effective May 1, 2009. This is a decrease from the previous borrowing base of $400 million and commitment amount of $350 million. The company has historically kept draws under its credit facility borrowing base at a level well below the established commitment amount and intends to fund 2009 capital expenditures primarily with cash flows from operations. The amount outstanding on the company’s credit facility as of March 31, 2009 was $236.7 million.
Moody's Investors Service 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.
