S&P cuts Clayton Williams

Standard & Poor's said it lowered Clayton Williams Energy Inc.'s $225 million 7¾% senior notes to B- from B+ with the recovery rating revised to 5, indicating an expectation of 10% to 30% recovery in the event of a default, from 2. The corporate credit rating remains unchanged at B.

The outlook is stable.

The ratings consider new information including an updated PV-10 report based on long-term pricing assumptions of $65 per barrel of West Texas Intermediate crude oil and $5.50 per million BTU of Henry Hub natural gas, S&P said.

The ratings also reflect Clayton Williams' bank's decision to increase the borrowing base under the company's secured revolving credit facility from $250 million to $300 million, the agency said.

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