S&P assigns BB- to Civitas notes

S&P said it assigned BB- issue-level and 3 recovery ratings to Civitas Resources Inc.'s planned $1 billion of senior notes due 2030. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 65%) recovery in default.

The agency’s BB- ratings on Civitas and its outstanding senior unsecured notes are unchanged.

The company will use the proceeds, along with equity issued directly to the seller, to finance its acquisition of assets owned by Vencer Energy LLC.

“We believe Civitas' proposed acquisition of the Vencer assets will expand its presence in the Permian Basin without materially affecting its overall scale,” S&P said in a press release.

The outlook is stable.

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