(The following statement was released by the rating agency)
Oct 11 - Standard & Poor's Ratings Services said today it has revised itsrecovery rating on the senior unsecured debt of Energy XXI Gulf Coast Inc., asubsidiary of Energy XXI (Bermuda) Ltd.
, to '4' from '5'. The '4'recovery rating reflects our expectation that creditors would receive an average(30% to 50%) recovery in the event of a payment default. As a result, we haveraised our rating on Energy XXI Gulf Coast's $750 million 9.25% notes and $250million 7.75% notes to 'B+' from 'B'.
Our 'B+' corporate credit rating and stable outlook on Energy XXI (Bermuda)Ltd. are unchanged.
The upgrade of the senior unsecured issues and revised recovery ratingsreflect the higher recovery valuation following the implementation of ourrecently revised price and recovery methodology for exploration and productioncompanies. Our recovery analysis incorporated an updated PV-10 valuation basedon June 30, 2012, proven reserves. For the complete recovery analysis, see ourrecovery report on Energy XXI, to be published after this release onRatingsDirect.
RELATED RESEARCH AND CRITERIA
-- Revised Assumptions For Assigning Recovery Ratings To The Debt Of OilAnd Gas Exploration And Production Companies, Sept. 14, 2012
-- Recovery Price Deck For Exploration And Production Companies Revised,Sept. 14, 2012
Rating Raised; Recovery Rating Revised
To FromEnergy XXI Gulf Coast Inc.Senior unsecured notes B+ BRecovery rating 4 5
Complete ratings information is available to subscribers of RatingsDirect onthe Global Credit Portal at
. All ratings affectedby this rating action can be found on Standard & Poor's public Web site at. Use the Ratings search box located in the leftcolumn.(New York Ratings Team)