S&P upgrades CrownRock debt to B+

Standard & Poor's said it raised its issue-level rating on CrownRock LP's senior unsecured debt to B+ from B and revised the recovery rating to 4 from 5, which indicates an expectation of average (30% to 50%, higher end of the range) recovery in the event of default.

The corporate credit rating remains B+.

The outlook is stable.

S&P said the action follows its updated recovery analysis for CrownRock. The valuation reflects the company's year-end 2015 PV-10 report, using our revised recovery price assumptions of $50 per barrel for West Texas Intermediate (WTI) crude oil, $3.00 per million Btu for Henry Hub natural gas, and natural gas liquids priced at the historical 12-month average realization.

"The corporate credit rating reflects our assessment of the company's participation in the highly cyclical and volatile oil and gas E&P industry, relatively small size and scale, above-average profitability, and expectation that capital spending will exceed internally generated cash flows over the next two years," S&P credit analyst Aaron McLean said in a news release.

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