S&P rates SandRidge notes B-

Standard & Poor's said it assigned its B- rating to SandRidge Energy Inc.'s (B/positive) proposed $500 million in senior unsecured notes, with a recovery rating of 5.

At the same time, the agency said it affirmed SandRidge's B corporate credit rating and lowered the issue rating on the company's $1 billion in existing senior unsecured notes to B- from B and revised the recovery rating to 5 from 3.

The ratings action came as a result of the significant increase in SandRidge's borrowing capacity under its senior secured revolving credit facility, which leaves less residual value available for unsecured creditors in the event of a payment default, the agency noted.

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