S&P gives Denbury Resources notes BB

Standard & Poor's said it revised its outlook on Denbury Resources Inc. to stable from positive and affirmed its ratings, including the BB corporate credit rating.

S&P also assigned a BB issue rating to Denbury's proposed $1 billion senior subordinated notes issue due 2023. The recovery rating on Denbury's senior subordinated notes remains 3.

Denbury is using proceeds from this offering to refinance existing debt.

"We are revising the outlook to stable from positive to reflect Denbury's higher debt balance following the company's $1.05 billion acquisition of Cedar Creek Anticline reserves from ConocoPhillips," S&P credit analyst Marc Bromberg said in a news release. "Denbury is funding the Cedar Creek acquisition with proceeds from the recent sale of its holdings in the Bakken basin."

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