S&P rates Endeavour notes CCC

Standard & Poor's said it assigned a preliminary CCC+ corporate credit rating to Endeavour International Corp.

The outlook is developing.

S&P assigned a preliminary CCC issue rating to Endeavour's proposed $250 million of senior unsecured notes due 2016. S&P also assigned a preliminary 5 recovery rating to the notes, indicating modest (10% to 30%) recovery in the event of a payment default.

The company will use proceeds from the transaction to repay existing debt and for general corporate purposes.

The ratings on Endeavour reflect a small reserve and production base, heavy reliance on a single development for expected near-term production growth and incremental cash flow, lack of operating control, high debt leverage and less than adequate liquidity, the agency said.

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