S&P cuts Stone Energy, debt to D

S&P said it lowered its corporate credit rating on Stone Energy Corp. to D from CC.

At the same time, the agency downgraded its issue-level rating on the company's senior unsecured debt to D from CC. The recovery rating is 3, indicating an expectation of meaningful (low end of the 50% to 70% range) recovery in the event of a payment default.

"The D rating reflects our expectation that Stone Energy will elect to file for Chapter 11 bankruptcy protection rather than make the November interest payment on its 7½% senior unsecured notes due 2022," S&P credit analyst David Lagasse said in a news release.

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