S&P rates Laredo Petroleum B-, notes CCC

Standard & Poor's said it assigned a B- corporate credit rating to Laredo Petroleum Inc., along with a CCC senior unsecured and 6 recovery rating to the company's $350 million senior unsecured note offering due 2019.

The recovery rating indicates 0% to 10% expected recovery in a default.

The ratings reflect the company's vulnerable business risk profile characterized by its small and geographically concentrated reserve base, high percentage of proved undeveloped reserves, meaningful exposure to weak natural gas prices, limited operating history, highly leveraged financial risk profile, negative cash flow generation and lower priced hedge position, S&P said.

These risks are offset by the company's success in growing its reserve base, primarily through its drilling program, the agency said.

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