S&P rates Seven Energy CCR, bonds B-

Standard & Poor's said it assigned its B- long-term corporate credit rating to Nigeria-based Seven Energy International Ltd.

The outlook is stable.

At the same time, the agency assigned a B- issue rating to the company's $300 million senior secured bond and $100 million private bond. There is no recovery rating assigned to the bonds because yet the analysis of the recovery process in Nigeria is not complete.

S&P said the ratings reflect its view of Seven Energy's business risk profile as "vulnerable" and its financial risk profile as "aggressive."

Seven Energy issued $400 million in new bonds in total in October 2014. These new bonds were used to repay about $185 million of existing convertible bonds and a reserve-based secured facility ($174 million drawn as of Sept. 30).

This results in the extension of the debt maturity profile, with no significant payment due before 2019. However, S&P notes that this will also lead to an increase in adjusted gross debt, which the agency assumes will be close to $850 million by the end of 2014.

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