Oil & Gas - Energy - Commodities - Resources (OILBRENT)

[Timothy Smith]

$WLL - Whiting Petroleum (WLL -5.7%) is sharply lower even as most energy stocks are higher today, as Moody’s downgrades WLL's corporate family rating to Caa1 from Ba2, a drop of five notches deeper into junk territory.

The ratings agency says its move reflects expectations of very weak cash flow-based leverage metrics in 2016 and particularly in 2017, when WLL's hedges roll off; with the company facing structurally low oil prices through 2017 and a heavy debt burden, Moody's sees a heightened risk of a debt restructuring for the company.