You are right! It's high rated junk! SWN's new rating cuts deeply in to its cash flow, as interest rates just went up. They still have to service that debt. The price to play, just got a lot more expensive. What they saved in their "layoffs" will now be used to service their debt. They had to do it, but with this new rating, they gained nothing.
4 replies (most recent on top)
It's not a good sign but BB+ really isn't that bad. It's where SWN was a few years ago anyway. We'll see if the slide continues or if management can right the ship
Yes!
I wish they would let the 1100 vest in their stock immediately, instead of 25% per year. They are no longer associated with the company, have 0 control over anything the company does and could use the cash now just to survive. With existing management, I don't have a "warm fuzzy" that the company will be around in one year, much less four. They let Mueller vest in all of his long term incentives and he is the guy who admits this mess is his fault. Give the 1100 at least a fighting chance to monetize some of their stock awards. Come on, Ms. McCauley, you need to be a "Right Person" doing the "Right Thing", or is it true that the "Formula" doesn't mean shit anymore?
That is usually the first step towards bankruptcy, would you agree?