S&P: Denbury view to negative

Standard & Poor’s said it revised the outlook on Denbury Resources Inc. to negative from stable.

The agency also said it affirmed all of the company’s existing ratings, including its BB corporate credit rating, BBB- rating on its senior secured bank debt and BB rating on its subordinated notes. The 4 recovery rating on the subordinated notes and the 1 recovery rating on the bank loan debt are unchanged.

The outlook revision reflects an expectation that Denbury’s credit measures will deteriorate over the next two years based on a revised price deck, S&P said.

The ratings continue to reflect the capital-intensive and high operating costs of its tertiary oil operations and its aggressive capital-spending program, the agency said.

The ratings also consider its significant production of high-priced oil and its relatively low-risk exploitation strategy, S&P said.

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