S&P rates Cobalt convertibles CCC-

Standard & Poor’s said it assigned its unsolicited CCC corporate credit rating to Cobalt International Energy Inc. The outlook is stable.

S&P also assigned an unsolicited CCC- issue-level and unsolicited 6 recovery ratings to the company’s $1.3 billion of 3.125% unsecured convertible senior notes due 2024 and $1.38 billion of 2.635% unsecured convertible senior notes due 2019. The 6 recovery rating indicates an expectation for negligible recovery (0% to 10%) for the noteholders in the event of a payment default.

“The stable rating outlook reflects our expectation that cash presently on hand will be sufficient to cover expected substantial cash outflow over the next one and a half to two years,” said S&P credit analyst Scott Sprinzen in a news release.

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