Moody’s Investors Service reported on Wednesday that it has lowered its outlook on energy company, Devon Energy Corp (DVN).
Moody’s has given the company a Baa1 long term debt and Prime-2 commercial paper ratings. NVN’s rating outlook was also cut from “stable” to “negative.”
Vice president of Moody’s, Gretchen French commented, “Devon’s negative rating outlook reflects the challenges of transitioning the company’s production profile to include a greater mix of higher-return liquids production, which has resulted in weaker returns and rising debt balances,”
“While the company’s large and diversified asset base supports its Baa1 rating, we are concerned that relative to its Baa1 peers, Devon’s credit profile could further weaken in 2013 and may not see meaningful improvement until at least 2014.”
Devon Energy shares were down 34 cents, or -0.59% during Wednesday afternoon trading. The stock has dropped -23% in the past year.
The Bottom Line
Shares of Devon Energy Corp (DVN) have a 1.55% yield, based on Wednesday afternoon’s price of $56.88.
Devon Energy Corp (DVN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.