S&P ups Endeavor Energy, debt

S&P said it raised Endeavor Energy Resources LP’s corporate credit rating to B from B-.

The outlook is stable.

The agency also upgraded the issue-level rating on the company's unsecured debt to B+ from B-. The recovery rating was revised to 2 from 3, reflecting an expectation for substantial (70%-90%; rounded estimate: 85%) recovery in the event of a payment default.

In addition, S&P raised the issue-level rating on the company's secured debt to BB- from B+. The recovery rating remains 1, reflecting an expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default.

"The upgrade reflects our assessment of Endeavor's use of proceeds from noncore asset sales to improve financial leverage and fund capital spending that could potentially lead to increased production and the continued development of its oil and gas properties," S&P credit analyst Aaron McLean said in a news release.

Since the beginning of 2016, Endeavor has received proceeds totaling about $900 million for the sale of oil and acreage it deemed noncore. The company paid down its revolving credit facility, which was undrawn as of Dec. 31, 2016, while it used the balance of the proceeds to help fund an increased capital program over the next two years.

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