S&P upgrades Matador debt to B

Standard & Poor's said it raised its issue-level rating on Matador Resources Co.'s senior unsecured debt to B (same level as the corporate credit rating) from B-.

The rating was removed from CreditWatch where it was placed with negative implications on April 6, 2015.

The agency simultaneously revised the recovery rating on this debt to 4, indicating an expectation of average (30% to 50%; higher end of range) recovery in the event of a payment default, from 5.

Matador Resources’ corporate credit rating remains B.

The outlook is stable.

S&P revised its recovery rating and raised its issue-level rating on Matador's senior unsecured debt based on an increase in the PV-10 valuation of the company's reserves as of year-end 2015, resulting in higher recovery prospects for the senior unsecured debt.

"The ratings on Matador Resources reflect our view of the company's vulnerable business risk and aggressive financial risk profiles," S&P credit analyst Christine Besset said in a news release.

© 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.