Sabine Oil and Gas Corp fka SOGCQ

[gdog]

The following is a press release from Standard & Poor's :

-- Oil and gas exploration and production company Forest Oil Corp. has
closed its merger with Sabine Oil & Gas LLC .
-- Sabine Oil & Gas LLC ( Sabine LLC ) combined with Forest, which has
changed its name to Sabine Oil & Gas Corp. ( Sabine Corp. ).
-- We are raising our corporate credit rating on Sabine Corp. to 'B' from
'B-' and removing it from CreditWatch with positive implications.
-- We are raising our issue ratings on Sabine Corp.'s senior secured debt
to 'BB-' from 'B+' and on its senior unsecured debt to 'CCC+' from 'CCC' and
removing them from CreditWatch with positive implications. The '1' recovery
rating on the company's senior secured rating and the '6' recovery rating on
its senior unsecured debt are unchanged.
-- We are also assigning our 'BB-' senior secured issue rating to Sabine
Corp.'s $2 billion secured credit facility maturing in 2016.
-- The outlook is negative, reflecting our expectation that Sabine
Corp.'s leverage will rise above 5x debt to EBITDA in 2016, which we view as
high for the rating.

NEW YORK ( Standard & Poor's ) Feb. 2, 2015 -- Standard & Poor's Ratings Services
said today it raised its corporate credit rating on Sabine Oil & Gas Corp.
(formerly known as Forest Oil Corp. ) to 'B' (same as the former Sabine LLC )
from 'B-' and removed the ratings from CreditWatch, where we placed them with
positive implications on May 8, 2014 , following Sabine LLC's announcement that
it would acquire Forest. Sabine LLC's former subsidiaries guarantee Sabine
Corp.'s debt. The outlook is negative.

In addition, we raised our issue rating on Sabine Corp.'s senior secured debt
to 'BB-' from 'B+' and on its senior unsecured debt to 'CCC+' (same as Sabine
LLC ) from 'CCC' and removed them from CreditWatch, where we placed them with
positive implications on May 8, 2014 . The recovery rating on the senior
secured debt remains '1' and the recovery rating on the senior unsecured debt
remains '6'. We are also assigning our 'BB-' senior secured debt rating and
'1' recovery rating to Sabine Corp.'s $2 billion secured revolving credit
facility with a $1 billion borrowing base.

"The upgrade reflects the merger with Sabine LLC and our view that the
combined company has an improved business risk due to increased scale," said
Standard & Poor's credit analyst Ben Tsocanos . "We assess its business risk as
"weak" and its financial risk as "highly leveraged." Sabine Corp. assumed
Sabine LLC's debt and its former subsidiaries provide guarantees of Sabine
Corp.'s debt."

The negative rating outlook reflects Standard & Poor's expectation that Sabine
Corp.'s leverage will rise above 5x debt to EBITDA and in 2016, which we view
as high for the rating. We project that leverage will begin to decline in
2017, reflecting a higher oil price assumption.

We would consider a downgrade if the company faced material liquidity issues
that limited its access to its credit facility or if we do not expect leverage
to decline after peaking next year.

We would consider revising the outlook to stable if Sabine Corp. can reduce
financial leverage to below 5x debt to EBITDA and above 12% FFO to debt while
maintaining adequate liquidity.