S&P: Denbury recovery rating to 4

Standard & Poor's said it revised the recovery rating on Denbury Resources Inc.'s senior subordinated debt to 4, indicating the expectation for 30% to 50% recovery in the event of a payment default, from 3. The senior subordinated debt is affirmed at BB and corporate credit rating at BB.

The outlook is stable.

The agency said it is lowering the value estimate of the company in a default scenario to reflect the impact from the company's sale of Permian, Mid-Continent and East Texas basin assets, which it closed in May.

It also excludes the value related to Encore Energy Partners, as Denbury is currently exploring a sale of its stake in the unit, S&P said.

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