S&P drops Alta Mesa to D

S&P said it cut Alta Mesa Holdings LP’s issuer- and issue-level ratings to D from CCC- on the company’s filing for bankruptcy under Chapter 11.

The recovery rating of 4 on Alta Mesa’s unsecured notes is unchanged, indicating S&P’s estimate of 30%-50%; (rounded estimate: 40%) recovery for creditors.

“The company had been experiencing production shortfalls which, combined with a challenging commodity price environment and a capital market that is highly constrained for energy companies, ultimately led to the bankruptcy filing,” said S&P in a press release.

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