S&P ups Sheridan Fund II to CCC-

Standard & Poor's raised its long-term issuer credit ratings on Sheridan Production Partners II-A, Sheridan Investment Partners II and Sheridan Production Partners II-M (collectively Sheridan Fund II) to CCC- from SD. The outlook is negative.

At the same time, S&P affirmed its issue ratings on the term loans at D.

The ratings on the revolving credit facilities remain at CCC and continue to be on CreditWatch with negative implications.

The upgrade reflects S&P’s updated view following Sheridan's below-market prepayments. On February 2, the agency downgraded the fund to SD as a result of the transactions.

Although the fund is still out of compliance with its asset coverage ratio (it has six months from the reassessment of the borrowing base to regain compliance), the prepayment brought the company within $51 million of the required $1.2 billion.

© 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.