S&P rates Legacy notes B-

Standard & Poor's said it assigned its B corporate credit rating to Legacy Reserves LP. The outlook is stable.

The agency said it also assigned a B- issue-level and 5 recovery rating to Legacy's planned $300 million senior unsecured note offering due 2020. The 5 recovery rating indicates an expectations of modest recovery prospects in the event of a payment default.

Legacy Reserves Finance Services Corp., a subsidiary of Legacy, will be a co-issuer of the notes.

"The ratings on Midland-based oil and gas exploration and production company Legacy Reserves LP reflect our assessment of the company's 'vulnerable' business risk and 'highly leveraged' financial risk," said S&P credit analyst Carin Dehne-Kiley in a news release.

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