S&P affirms Vulcan Energy loan

Standard & Poor's said it affirmed its secured loan rating of BB on Vulcan Energy Corp.'s $288 million term loan, which currently has $274 million outstanding, and revised the recovery rating.

The loan rating is the same as the corporate credit rating on Vulcan and the recovery rating was revised to 4, indicating the expectation for marginal principal recovery, from 5, the agency said.

In assigning its original 5 recovery rating, S&P said it had assumed that a default at Plains All American Pipeline LP would likely result in a default at Vulcan.

Since Vulcan's sole collateral consists of its 54% general partnership and 11% limited partnership interest in Plains, a bankruptcy at Plains would in all likelihood result in negligible recovery at Plains, the agency said.

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