S&P lifts EP Energy loan to B

S&P said it affirmed its B corporate credit rating on EP Energy LLC.

The outlook was revised to negative from stable.

At the same time, the agency raised the senior secured ratings on the company's term loans due 2018 and 2019 to B from B- and revised the recovery rating to 3, reflecting an expectation of meaningful (50% to 70%, upper half of range) recovery in a payment default from 5.

S&P also affirmed the CCC+ issue-level rating on the company's senior unsecured debt. The recovery rating remains 6, indicating an expectation of negligible (0%-10%) recovery in the event of a payment default.

"The outlook revision to negative reflects our assessment of the recent reduction in EP's borrowing base and the expected impact it will have on liquidity and recovery expectations for the company's debt," S&P credit analyst Paul Harvey said in a news release.

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