S&P rates Ultra notes B

S&P said it raised the issuer credit rating on Ultra Petroleum Corp. to CCC+ from SD (selective default).

The agency also said it assigned a B rating and 1 recovery rating to the second-lien notes due 2024.

The 1 recovery rating indicates 90% to 100% expected default recovery.

S&P also said it affirmed the B rating with 1 recovery rating on the company's 2024 term loan.

The agency also said it affirmed the D rating on the unsecured notes and revised the recovery rating to 5 from 6, indicating 10% to 30% expected default recovery.

Ultra has completed several debt exchanges below par, whereby it exchanged portions of its unsecured notes due 2022 and 2025 for new second-lien notes due 2024.

The negative outlook reflects a view that Ultra remains vulnerable and dependent on favorable business and financial conditions to meet its financial commitments, S&P said.

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