S&P downgrades EP Energy

S&P said it lowered the issuer credit rating on EP Energy LLC to CCC- from CCC+.

The agency also said it lowered the issue-level ratings on the company's 1.125- and 1.25-lien notes to CCC+ from B and on the 1.5-, second-lien and senior unsecured notes to C from CCC-.

The downgrade follows heightened concerns surrounding EP Energy's liquidity as the company's recent financial report included language questioning its ability to address $182 million in senior unsecured notes due in May 2020, the agency explained.

The company has an unsustainable interest burden and capital structure and increased risk of a capital restructuring that would consider tantamount to a default, the agency said.

The negative outlook reflects a view that a default or partial restructuring is likely without an unanticipated favorable change in the company's circumstances, S&P said.

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