S&P lowers Warren Resources to D

Standard & Poor's lowered its corporate credit on Warren Resources Inc. to D from SD (selective default). The issue-level rating on the company's unsecured debt remains D.

The recovery rating remains 6, indicating S&P’s expectation of negligible (0%-10%) recovery in the event of a payment default.

The D ratings reflect Warren Resources' announcement that it missed a $7.5 million interest payment on its outstanding $300 million 9% notes ($167 million outstanding) due 2022, and S&P’s belief that the company will not make this payment before the 30-day grace period ends.

S&P believes the default will be a general default and the company will fail to pay all or substantially all of its obligations as they come due.

The company also disclosed that it is engaged in ongoing negotiations with the holders of its outstanding unsecured notes regarding a potential restructuring, along with possible avenues for increasing its near-term liquidity.

© 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.