S&P upgrades Laredo notes, rates add-on B

Standard & Poor's said it assigned its B issue rating to Laredo Petroleum Inc.'s proposed $350 million senior unsecured notes. S&P also raised the issue ratings to B from B- on the company's existing $1.05 billion of senior unsecured notes.

At the same time, S&P revised the recovery rating on the notes to 5 from 6. The 5 recovery rating indicates an expectation of modest (10% to 30%) recovery for lenders in the event of a default.

Laredo's B+ corporate credit rating remains unchanged. The outlook is stable.

S&P said the upgrade reflects its assessment of the company's asset valuation based on its midyear 2013 oil and gas reserves. The recovery rating revision reflects S&P's higher asset valuation primarily resulting from increased levels of proved reserves, resulting in improved recovery prospects for unsecured noteholders in the event of a default.

© 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.