S&P: Quicksilver unaffected

Standard & Poor's said its ratings on Quicksilver Resources Inc. will not be immediately affected by the company's plans to form an exploration and production master limited partnership for a portion of its assets in the Barnett Shale.

Roughly 18% of Quicksilver's Barnett production and 15% of its Barnett reserves would initially be dropped down to the MLP. Quicksilver plans to IPO the MLP early next year and expects to generate net proceeds of $400 million, which would be used to pay down its debt, the release stated.

While S&P said it views management's stated intention to pay down debt as positive from a credit perspective, the uncertainty regarding net proceeds from an IPO and the source of an additional $540 million in liquidity keeps the agency from immediately revising the rating on Quicksilver.

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