S&P rates Oasis notes B, on positive watch

Standard & Poor's said it assigned a B rating and 5 recovery rating to Oasis Petroleum Inc.'s proposed $600 million senior unsecured notes due 2022.

The agency also said it placed the rating on CreditWatch with positive implications pending the completion of the bond sale.

The existing ratings on Oasis also remain on CreditWatch with positive implications.

Upon successful completion of the new issue, S&P said it will raise the corporate credit rating on Oasis to BB- from B+ and the unsecured debt ratings to B+ from B.

However, if the bond issue were to be upsized to more than $800 million, S&P said it will assign a 6 recovery rating and B- rating to the notes and remove the rating from CreditWatch.

Upon successful completion of the new issue, the agency said it still will raise the corporate credit rating on Oasis to BB- from B+, but will revise the recovery rating on the existing senior unsecured debt ratings to 6 and will leave the issue-level rating on this debt at B, which is two notches below the corporate credit rating.

The proceeds will be used from this offering to fund a portion of its recent acquisitions in the Williston Basin, S&P said.

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