S&P may up Delta Petroleum

Standard & Poor's said it placed Delta Petroleum Corp.'s B- corporate credit and senior unsecured ratings on CreditWatch with positive implications.

The possible upgrade reflects the significant improvement expected to the company's liquidity and financial profile following the announcement that Kirk Kerkorian's Tracinda Corp. has reached an agreement with Delta to purchase 36 million common shares, roughly 35% of Delta's fully diluted common stock, for proceeds of $684 million.

The agency also noted that Delta could take a more aggressive approach to shareholder returns if Tracinda tries to accelerate its return on investment.

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