S&P: American Eagle Energy notes CCC

Standard & Poor's said it assigned its CCC+ corporate credit rating to American Eagle Energy Corp.

The outlook is developing.

At the same time, the agency assigned its CCC issue rating and 5 recovery rating to American Eagle's proposed $175 million senior secured notes due 2019.

Proceeds will primarily be used to refinance its existing debt and for general corporate purposes, including working capital and future capital spending.

"The ratings on American Eagle reflect our view of the company's participation in the volatile and capital-intensive oil and gas E&P industry, and its small and geographically concentrated asset base in Divide County, N.D.," S&P credit analyst Christine Besset said in a news release.

"The ratings also reflect our view of American Eagle's aggressive growth strategy, which entails high capital spending plans, significant debt leverage, and the company's dependence on favorable business, financial, and economic conditions to maintain sufficient liquidity and meet its financial commitments."

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