Fitch lifts Energy XXI

Fitch Ratings said it upgraded Energy XXI's issuer default rating and senior unsecured ratings to B+ from B.

The outlook is stable.

The agency also upgraded its convertible perpetual preferreds to B- with a recovery rating of RR6 from CCC with a recovery rating of RR6.

Energy XXI Gulf Coast (Delaware)'s issuer default rating also was upgraded to B+ from B, along with its senior secured revolver to BB+ with a recovery rating of RR1 from BB with a recovery rating of RR1 and senior unsecured notes to B+ with a recovery rating of RR4 from B with a recovery rating of RR4.

The ratings are supported by the trend of recent deleveraging, increased size and scale following the Exxon property acquisition, Energy XXI's high exposure to liquids and good operational metrics, Fitch said.

Ratings concerns include the company's small size, high leverage, lack of basin diversification and vulnerability to hurricane risks, the agency said.

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