S&P rates Laredo notes B-

Standard & Poor's said it assigned its B- issue-level and 6 recovery ratings to Laredo Petroleum Inc.'s proposed $400 million senior unsecured notes due 2022.

The recovery rating indicates an expectation of negligible recovery in the event of a payment default.

S&P said the ratings on Laredo Petroleum reflect its weak business risk characterized by a growing, albeit geographically concentrated, reserve base; its high percentage of proved undeveloped reserves; its aggressive financial risk; and its negative cash flow generation.

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