S&P lifts RAAM Global outlook, cuts notes

Standard & Poor's said it revised its outlook on RAAM Global Energy Co. to stable from negative and affirmed its B- corporate credit rating.

At the same time, the agency said it lowered the issue-level rating on RAAM's $200 million senior notes due 2015 to B- from B. The agency also revised the recovery rating to 3, indicating an expectation of meaningful recovery of principal in the event of a payment default, from 2.

"The outlook revision on RAAM reflects our expectation that the company's liquidity and cash flow will improve as a result of higher natural gas prices based on our revised price assumptions as of July 24, 2012," said S&P credit analyst Susan Ding in a news release.

"The lowering of the issue rating on the company's secured debt and revision of the recovery rating result from our updated calculation of the company's reserve valuation," Ding said.

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