S&P rates Everest notes B and BB, loan BB

Standard & Poor's said it assigned a preliminary BB- corporate credit rating to Everest Acquisition LLC, to be renamed EP Energy LLC upon closing of the acquisition. The outlook is stable.

The agency said it also assigned a preliminary BB issue-level rating to Everest's planned $500 million senior secured notes and its $500 million senior secured term loan. The agency assigned this debt a 2 preliminary recovery rating.

S&P said it also assigned a preliminary B issue-level rating to Everest's planned $2.5 billion senior unsecured notes. The preliminary recovery rating on these notes is 6.

"The ratings on Everest Acquisition LLC reflect our assessment of the company's 'fair' business risk and 'aggressive' financial risk profiles," said S&P credit analyst Carin Dehne-Kiley in a news release.

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