S&P Downgrades Bonanza Creek Energy (BCEI) to 'D' Amid Missed Interest Payment

August 18, 2016 2:21 PM EDT
Get Alerts BCEI Hot Sheet
Trade BCEI Now!
Join SI Premium – FREE

Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.

S&P Global Ratings today lowered its corporate credit rating on Bonanza Creek Energy Inc. (NYSE: BCEI) to 'D' from 'CCC'.

At the same time, we lowered our issue-level ratings on the company's senior unsecured notes to 'D' from 'CC'. The recovery rating on the senior unsecured notes remains '6', indicating our expectation of negligible (0% to 10%) recovery in the event of a payment default.

The downgrade follows Bonanza Creek's announcement that it elected not to make the Aug. 1, 2016 interest payment on the 5.75% senior unsecured notes due 2023. We do not expect the company to make this interest payment before the end of the 30-day grace period and we do not envision additional interest payments on the remaining debt.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Credit Ratings

Related Entities

Standard & Poor's

Add Your Comment