(The following statement was released by the rating agency)
Oct 11 - Standard & Poor's Ratings Services said today it has revised its recovery rating on the senior unsecured debt of Energy XXI Gulf Coast Inc., a subsidiary 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 have raised our rating on Energy XXI Gulf Coast's $750 million 9.25% notes and $250 million 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 ratings reflect the higher recovery valuation following the implementation of our recently revised price and recovery methodology for exploration and production companies. Our recovery analysis incorporated an updated PV-10 valuation based on June 30, 2012, proven reserves. For the complete recovery analysis, see our recovery report on Energy XXI, to be published after this release on RatingsDirect.
RELATED RESEARCH AND CRITERIA
-- Revised Assumptions For Assigning Recovery Ratings To The Debt Of Oil And 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 From Energy XXI Gulf Coast Inc. Senior unsecured notes B+ B Recovery rating 4 5
Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at
. All ratings affected by this rating action can be found on Standard & Poor's public Web site at . Use the Ratings search box located in the left column. (New York Ratings Team)