S&P: SandRidge view negative

Standard & Poor's said it revised the outlook on SandRidge Energy Inc. to negative from stable and affirmed its B+ corporate credit rating.

The agency also said it placed the B+ rating on the company's senior debt on CreditWatch with negative implications.

The action reflects a view that credit measures may remain weak for the rating in 2011 given the significant increase in SandRidge's capital expenditure budget for the remainder of 2010 and 2011, S&P said. As a result, the agency said it thinks debt leverage could remain above the threshold of 4.5x if the company is not able to successfully complete planned asset sales.

The ratings reflect its highly leveraged financial profile and geographic concentration in Texas and Oklahoma, S&P said.

The ratings also reflect SandRidge's strategic shift to oil production from natural gas in response to weak near-term natural gas prices, the agency said.

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