S&P lowers Kodiak notes

Standard & Poor's said it revised its recovery rating on Kodiak Oil & Gas' senior unsecured debt to 6 from 5. The 6 recovery rating reflects an expectation for a negligible recovery for creditors in the event of a payment default.

As a result, the agency said it lowered its rating on Kodiak's $800 million 8 1/8% unsecured notes to CCC+ from B-.

The B corporate credit rating and stable outlook are unchanged.

The agency said the downgrade on the senior unsecured issue and the revision of the recovery ratings reflect the lower recovery valuation following the recently announced $150 million increase in Kodiak's borrowing base to $375 million from $225 million.

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