S&P lowers Laredo Petroleum

Standard & Poor’s said it lowered the corporate credit rating on Laredo Petroleum Inc. to B from B+.

The agency also said it lowered the ratings on the company’s senior unsecured debt to B- from B. The recovery rating on this debt remains at 5, indicating 10% to 30% expected default recovery.

The outlook is stable.

The downgrades reflect the reduced oil- and natural-gas price assumptions and resulting estimates for higher debt leverage in 2016 and 2017, S&P said.

The company’s business risk profile is considered weak, reflecting its small and concentrated reserve base, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.