S&P lowers SandRidge

Standard & Poor's said it affirmed the B long-term corporate credit rating on SandRidge Energy Inc.

The outlook is stable.

S&P also said it lowered the recovery rating on the company's $4.3 billion of senior unsecured notes to 5 from 4, along with the issue rating to B- from B. The ratings were removed from CreditWatch with negative implications, where they were placed Dec. 21. The 5 recovery rating indicates 10% to 30% expected recovery in a default.

The action follows news that SandRidge closed on the sale of its Permian Basin properties for about $2.6 billion, S&P said.

The transaction materially reduces the company's reserves and production and increases its geographic concentration, the agency said.

The ratings also reflect the company's focus on increasing production of oil versus natural gas, reflecting the weak near-term natural gas prices, S&P said.

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