S&P rates EV Energy notes B-

Standard & Poor's said it assigned a B long-term corporate credit rating to EV Energy Partners LP, along with a B- rating to the company's planned $250 million senior unsecured note offering due 2019. A 5 recovery rating indicated 10% to 30% expected recovery in a default.

EV Energy Finance Corp., a subsidiary of EV Energy Partners, will be a co-issuer on the notes.

The proceeds will be used to repay existing debt on its revolving credit facility.

The outlook is stable.

The ratings reflect a reserve base that is levered to low natural gas prices, a reserve replacement strategy relying heavily on acquisitions, its high dividend payout to shareholders and aggressive leverage, S&P said.

The ratings also reflect a decent hedge book over the next several years that should mitigate hydrocarbon volatility, low geological risk associated with the company's high percentage of proved developed reserves, adequate liquidity and a good cost structure, the agency said.

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