S&P ups SandRidge, rates notes B

Standard & Poor's said it raised its corporate credit rating on SandRidge Energy Inc. to CCC+ from SD (selective default).

The outlook is negative.

The agency also raised the issue-level rating on the company's senior unsecured notes due 2021 and 2022 to CCC- from D and lowered the issue-level rating on the notes due 2020 and 2023 to CCC- from CCC. The recovery rating on the senior unsecured notes was revised to 6 from 5, reflecting an expectation of negligible (0% to 10%) recovery in the event of a conventional default.

In addition, S&P is assigning a B issue-level rating to SandRidge's proposed $1 billion senior secured second-lien note offering. The recovery rating on these notes is 1, reflecting an expectation of very high (90% to 100%) recovery in the event of default.

The agency noted that the size offering could be increased up to $1.25 billion without negative rating implications. An increase above that level would result in the issue-level rating being lowered one notch.

"The rating actions follow SandRidge's announcement of its proposed $1 billion senior secured second-lien note offering to fund general corporate purposes, including repaying credit facility borrowings and higher capital spending," S&P credit analyst Ben Tsocanos said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.