S&P assigns Energy XXI CCC+, notes CCC

Standard & Poor's said it assigned its CCC+ corporate credit rating to Energy XXI (Bermuda) Ltd.

At the same time, the agency said it assigned its CCC senior unsecured rating to subsidiary Energy XXI Gulf Coast Inc.'s proposed $700 million note offering.

The outlook is stable.

According to S&P, the ratings on Energy XXI reflect its very limited operating history, high debt leverage, elevated cost structure, aggressive growth strategy, and small reserve base concentrated in the capital-intensive Gulf of Mexico region while mitigating factors include an experienced management team, a substantial hedging program to protect cash flows, and improving operating results.

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