S&P changes Quicksilver view to negative

Standard & Poor's said it revised its rating outlook on Quicksilver Resources Inc. to negative from stable and affirmed its CCC+ corporate credit rating.

At the same time, the agency affirmed the CCC+ issue-level rating on Quicksilver's second-lien debt and the CCC- issue-level ratings on its senior unsecured and subordinate debt.

S&P said the outlook revision reflects its expectation that Quicksilver will continue to burn cash at a run-rate of about $20 million to $35 million per quarter, depleting its cash position (as of Dec 31, 2013) of about $250 million over the next several quarters.

"The negative outlook reflects Standard & Poor's expectation that liquidity will deteriorate over the next 12-18 months, absent a potential strategic transaction or capital infusion," S&P credit analyst Carin Dehne-Kiley said in a news release.

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