Chesapeake's credit downgraded by S&P; shares dip

Chesapeake Energy gets a downgrade from S&P and shares dip nearly 5 percent

Associated Press

NEW YORK (AP) -- Standard & Poor's is lowering Chesapeake Energy's credit rating even further and company shares are down more than 5 percent.

The credit ratings agency believes that Chesapeake is struggling to generate enough cash to pay off its debts as natural gas prices plunge. Standard & Poor's also noted Tuesday the "mounting turmoil" from CEO Aubrey McClendon's personal financial dealings, saying that it could make it tougher for the company to raise money in the future.

Chesapeake's rating was dropped one notch lower by Standard & Poor's to "BB-," meaning the company " faces major ongoing uncertainties to adverse business, financial and economic conditions."

Shares of Chesapeake Energy Corp. are down 87 cents to $14.65 in midday trading.

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