S&P revises Permian Production view to negative

S&P said it revised its outlook on Permian Production Partners LLC to negative from stable and affirmed the B- issuer credit rating.

At the same time, S&P affirmed the B+ issue-level rating on Permian Production Partners' senior secured term loan due 2024. The 1 recovery rating remains unchanged, indicating an expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default.

“The negative outlook reflects the potential that we will lower our ratings on the company if it is unable to reverse the production declines and increase its cash flows to improve the coverage of its capital spending and debt amortization,” S&P said in a news release.

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