S&P rates MD America Energy loan B-

S&P said it affirmed its B- issuer credit rating on MD America Energy LLC.

The agency assigned a B- issue-level rating and recovery rating of 3 to the company's new $200 million senior secured term loan due in 2023.

The outlook is stable.

“The ratings continue to reflect MDAE's participation in the capital-intensive and very cyclical oil and gas E&P industry, the very small size and scale of reserves and production, and the high proportion of proved undeveloped reserves (about 62% of total reserves at midyear 2018), which will require significant investments to develop,” the agency said in a news release.

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