S&P: Talos Energy cut to B-, notes to CCC+

Standard & Poor’s said it lowered its corporate credit rating on Talos Energy LLC to B- from B. The outlook is negative.

S&P also lowered its issue-level rating on the company’s existing senior unsecured notes to CCC+ from B-. The recovery rating remains 5, indicating the agency’s expectation of modest (the lower end of the 10% to 30% range) recovery in the event of a payment default.

“The downgrade reflects the effect of our reduced oil and natural gas price assumptions on the company’s credit measures and our estimates for higher debt leverage in 2016 and 2017,” said S&P credit analyst Daniel Krauss in a news release.

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