S&P assigns Goodrich Petroleum B, notes CCC+

Standard & Poor's said it assigned a B corporate credit rating to Goodrich Petroleum Corp., along with a CCC+ rating on its proposed $225 million senior unsecured notes due 2019 and existing $219 million convertible senior unsecured notes due 2029.

The recovery rating on this debt is 6, indicating 0% to 10% expected recovery in a default.

The outlook is stable.

The proceeds will be used to redeem its existing $175 million of convertible notes due 2026, which have a put option exercisable in December 2011. The funds will be held in escrow until the notes are redeemed, sometime before Dec. 1, 2011, the agency said.

The ratings reflect the company's relatively small reserve base, meaningful exposure to natural gas and lower reserve life relative to some of its peers, S&P said.

The ratings also consider the company's good hedging position, adequate near-term liquidity and planned shift to oil development in the Eagleford shale, the agency said.

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