Standard & Poor's Ratings Services said today that it assigned its 'B-' rating to SandRidge Energy Inc's (B/Positive/--) proposed $500 million in senior unsecured notes, with a recovery rating of '5', indicating our expectation of modest (10%-30%) recovery in the event of a payment default. At the same time, we affirmed SandRidge's 'B' corporate credit rating and lowered the issue rating on the company's $1 billion in existing senior unsecured notes to 'B-' from 'B' and revised the recovery rating to '5' from '3'.
"The ratings action came as a result of the significant increase in SandRidge's borrowing capacity under its senior secured revolving credit facility, which leaves less residual value available for unsecured creditors in the event of a payment default," said Standard & Poor's credit analyst David Lundberg.
