S&P lowers Clayton Williams view to negative

Standard & Poor’s said it revised the outlook on Clayton Williams Energy Inc. to negative from stable.

The agency also said it affirmed all of the company’s existing ratings, including the BB- rating on its senior secured bank debt and B- rating on its senior unsecured notes.

The outlook revision reflects an expectation that the company’s credit measures will deteriorate over the next two years based on the lower price deck assumptions, S&P said.

Although the agency said it believes that Clayton Williams will reduce capital spending significantly in 2015 to protect cash flows, the company has no hedges in place and EBITDA is expected to weaken due to lower oil prices.

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