S&P Global Ratings lowered its issuer credit rating on Houston-based exploration and production company Oasis Petroleum Inc. to ‘D’ from ‘CCC-’. S&P also lowered its issue-level rating on the company’s senior unsecured notes to ‘D’ from ‘CCC-’.
The downgrade reflects Oasis’ decision to not make the Sept. 15, 2020, interest payments on its 6.875% senior unsecured notes due in 2022 and 2.625% senior unsecured convertible notes due in 2023. S&P does not expect the company will make these interest payments within the 30-day grace period given its constrained liquidity position. S&P expects the company will seek a broader financial restructuring.