S&P lifts Eagle Rock notes

Standard & Poor's said it changed its recovery rating on Eagle Rock Energy Partners LP to 4, indicating that the lenders would receive average recovery if a payment default occurs, from 5.

The agency said it also raised the issue rating on the partnership's $300 million senior unsecured notes to B from B-. The agency also affirmed the corporate credit rating at B. The outlook is stable.

S&P said its ratings on Eagle Rock Energy reflect an aggressive financial risk profile and a weak business risk profile.

The outlook on the rating is stable and reflects S&P's expectations that Eagle Rock Energy will adequately manage its recent Crow Creek acquisition, maintain debt to EBITDA in the 3.5x to 4.0x area and keep adequate liquidity, the agency said.

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