Chesapeake Energy Cut to BB by S&P Over CEO’s Financing Deals

Chesapeake Energy Corp., whose board is reviewing Chief Executive Officer Aubrey McClendon’s financing agreements, had its corporate credit and senior unsecured debt issue ratings downgraded to BB from BB+ by Standard & Poor’s.

McClendon’s agreements related to the company’s founder well participation program “underscore shortcomings” in the company’s corporate governance, S&P said in a statement. The ratings may be cut further, S&P said.

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