12:52 PM EDT, 05/10/2024 (MT Newswires) -- Fitch Ratings said Friday it upgraded Precision Drilling's ( PDS ) long-term issuer default rating to "BB-" from 'B+".

Also, Fitch upgraded the company's senior unsecured ratings to "BB-"/"RR4" from "B+"/"RR4" and affirmed the senior secured revolver at "BB+"/"RR1".

The rating outlook is stable.

The upgrade reflects the company's execution on material gross debt reduction initiatives, improved through-the-cycle leverage metrics, strong liquidity, manageable maturity profile, and consistently positive free cash flow generation, which supports further debt reduction.

Offsetting factors include uncertainty around increases in E&P development spending and rig counts amid weak natural gas prices, the rating agency said.

The company's shares were last seen down $3.57 to $98.01 on the Toronto Stock Exchange.

Price: 98.01, Change: -3.57, Percent Change: -3.51