S&P gives BB+ to Continental Resources notes

S&P said it assigned its BB+ issue-level rating (the same as the corporate credit rating) to Continental Resources Inc.'s proposed senior unsecured notes due 2028. The recovery rating is 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery to creditors in the event of a payment default.

The company will use proceeds to redeem its existing $500 million term loan due 2018 and to repay a portion of the amounts outstanding on its unsecured revolving credit facility maturing in 2019 ($938 million outstanding as of Sept. 30, 2017).

S&P said the ratings on Continental Resources reflect its assessment of the company's satisfactory business risk profile and significant financial risk profile. The ratings also reflect the company's above-average sensitivity to changes in crude oil prices, given the high proportion of oil in its reserves and production mix and limited hedging, the agency said.

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