S&P: Energy Partners on watch

Standard & Poor's said it placed its B+ corporate credit rating on Energy Partners Ltd. on CreditWatch with negative implications.

At the same time, S&P said it revised the CreditWatch implications for its B+ rating on Stone Energy Corp. to developing from positive.

S&P noted that the CreditWatch listing for Energy Partners follows its announcement that it has made an offer to Stone Energy's board of directors to purchase all its outstanding stock for $52.00 per share, adding that Energy Partners' offer is $10.00 per share higher than Plains Exploration & Production Co.'s (BB/Watch negative) offer for Stone Energy that was announced in late April.

The negative CreditWatch listing for Energy Partners incorporates concerns that leverage for the combined entity would materially worsen to more than 58% on a debt to capital basis and over $9.00 on a total proved per barrel basis should the transaction be effected as outlined, the agency said.

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