S&P cuts Quicksilver notes, loan to B

Standard & Poor's said it lowered Quicksilver Resources Inc.'s $700 million second-lien term loan and $475 million senior notes to B from B+, based on revision of the recovery rating on the second-lien debt to 6.

The company's $350 million subordinated notes remain unchanged at B with 6 recovery.

These changes follow Quicksilver's announcement that it increased its first-lien secured asset-based revolving loan facility to $1.45 billion from $1.2 billion.

S&P said the rating reflects the company's weak business profile and aggressive financial risk profile.

The business risk assessment is based on the company's participation in a competitive, capital-intensive and highly cyclical industry; its small- to medium-size reserve base; low but increasing production; and its competitive cost structure, the agency said.

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