S&P lowers QEP Resources

S&P said it lowered the issuer credit rating on QEP Resources Inc. to B+ from BB-.

The agency also said it affirmed the BB- rating and raised the recovery rating to 2 from 3.

QEP Resources has announced that it terminated the sale of its Williston Basin asset to Vantage Energy Acquisition Corp.

QEP subsequently announced that it will review strategic alternatives, including the sale of all or parts of the company, S&P said.

The news coincides with 2019 guidance that drilling and capital expenditure will be significantly suppressed due to a possible sale, the agency said, as well as lower crude oil prices.

The negative outlook reflects the uncertainty of QEP's strategic review and potential that any actions could weaken its business due to reduced scale of operations, S&P said.

The company's profitability has weakened due to soft crude oil prices and diminished cash flows, resulting in weaker-than-expected financial performance, the agency said.

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