Value Microcaps Zip Code Changers

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ATPG (1.45) was recently downgraded by S&P -

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

-- We believe that U.S. oil and natural gas exploration and production
(E&P) company ATP Oil & Gas will post lower-than-expected production and
operating cash flow numbers in the second quarter of 2012 because of various
operational issues.
-- We expect ATP's liquidity to have deteriorated since March 2012 and
that it will become increasingly tighter in the next three months as the
company faces large capital spending, royalty interests and bond interest
payments in the next 90 days.
-- We are lowering our corporate credit rating to 'CCC'.
-- The outlook is negative and reflects the likelihood for a downgrade if

the company is not able to resolve its looming liquidity shortfall.


DALLAS (Standard & Poor's) Aug. 1, 2012--Standard & Poor's Ratings Services
said today it lowered its long-term corporate credit ratings on Houston-based
ATP Oil & Gas Corp. ((ATP) to 'CCC' from 'CCC+' The outlook is negative.

At the same time, we raised our issue rating on the company's senior unsecured

notes to 'CCC' from 'CCC-' (same as the corporate credit rating). We revised
the recovery rating on these notes to '4', indicating our expectation of
average (30% to 50%) recovery in the event of a payment default, from '6'.
(For the full recovery analysis, please see the recovery report on ATP Oil &
Gas Corp., to be published after this release.)

"The downgrade reflects our expectation that ATP's liquidity is currently
limited relative to projected fixed charges over the next three months," said
Standard & poor's credit analyst Christine Besset. "Because of various
operational issues faced by the company, we believe that cash flow in
second-quarter 2012 will be below our forecasts, leaving ATP with
lower-than-expected liquidity at the end of the quarter." We estimate that
current liquidity and operating cash flow over the next three months will be
insufficient to cover capital expenditures (capex), royalty interest payments
and November bond interests without a cut in capital spending or outside
financing.

"The recovery rating revision reflects a change in our valuation of the
company's reserves," added Ms. Besset. "Given the heightened risk of a
near-term default, we are now valuing the reserves using price assumptions
which are close to the current price environment rather than the low commodity

prices we generally assume for most E&P companies."

The ratings on ATP Oil & Gas Corp. (ATP) reflect our assessment of its "weak"
liquidity, the execution risk related to developing reserves and production on

a consistent basis (particularly in the deepwater Gulf of Mexico), high
capital spending requirements, exposure to volatile commodity prices, and very

high debt leverage.

The negative outlook reflects the looming liquidity shortfall. We could take a

negative rating action if the company is unable to secure additional funding
this year or is unsuccessful in developing planned 2012 wells, jeopardizing
its liquidity situation for 2013. We may revise the outlook to positive if ATP

finds additional financing and increases production, cash flow, and liquidity
to fund 2012 and 2013 fixed charges--likely in conjunction with continued high

commodity prices.


RELATED CRITERIA AND RESEARCH
-- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
-- General Criteria: How Standard & Poor's Uses Its 'CCC' Rating, Dec.
12, 2008
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008


Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings affected
by this rating action can be found on Standard & Poor's public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left
column.

Primary Credit Analyst: Christine Besset, Dallas (1) 214-765-5865;
[e-mail]
Secondary Contact: Ben B Tsocanos, New York (1) 212-438-5014;
[e-mail]