S&P gives CCC+ to Lonestar Resources notes

Standard & Poor's said it assigned its B- corporate credit rating to Lonestar Resources America Inc. The outlook is stable.

At the same time, S&P assigned a CCC+ issue rating to Lonestar's proposed $200 million unsecured notes due 2019. The recovery rating is 5, indicating an expectation of modest (10% to 30%) recovery if the company defaults on a payment.

The ratings on Lonestar reflect S&P's assessment of the company's "vulnerable" business risk, its "highly leveraged" financial risk profile and its "adequate" liquidity profile.

"Partially buffering these weaknesses are its exposure to crude oil prices and thus its above-average profitability relative to rated peers," said S&P credit analyst Marc Bromberg in a news release.

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