S&P gives Centennial Resource B+, notes BB-

S&P said it assigned a B+ corporate credit rating to Centennial Resource Production LLC and assigned a BB- issue rating to the proposed $350 million senior unsecured notes due 2026.

The recovery rating is 2, indicating an expectation of substantial (70% to 90%; rounded estimate: 85%) recovery in the event of a payment default.

The outlook is stable.

The agency said the rating on Centennial reflects the company's participation in the cyclical and capital-intensive oil and gas exploration and production industry, its relatively small proven reserve and production base, lack of geographic diversity, short track record and control by a financial sponsor.

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