Fitch affirms Energy XXI

Fitch Ratings said it affirmed Energy XXI's issuer default rating at B.

The outlook is stable.

All of the company's debt is issued at the Energy XXI Gulf Coast, Inc. subsidiary level with the exception of the convertible perpetual preferreds, which are issued by Energy XXI (Bermuda) Ltd.

The ratings are supported by the company's high exposure to liquids, reasonable operational metrics, willingness to issue equity and equity-equivalent instruments to fund growth and operator status on a majority of its properties, Fitch said.

Concerns include the company's high leverage, small size and lack of basin diversification, along with a vulnerability to hurricane risks, the agency said.

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