S&P elevates Laredo Petroleum

S&P said it raised the issuer credit rating on Laredo Petroleum Inc. to B from B-.

At the same time, S&P raised the issue-level rating on Laredo's senior unsecured notes to B+ from B. The 2 recovery rating is unchanged, indicating an expectation for substantial (capped at 70%-90%; rounded estimate: 85%) recovery of principal in the event of a payment default.

The outlook is stable.

“We expect a sustained improvement in credit measures for Oklahoma-based crude oil and natural gas exploration and production (E&P) company Laredo Petroleum Inc. due to more supportive commodity prices, which will enable it to generate positive free operating cash flow (FOCF) and reduce its debt,” S&P said in a news release.

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