We expect U.S.-based exploration and production company Hilcorp Energy I L.P.'s credit measures will be below expectations for the rating through 2021, under our revised oil and gas price assumptions. Moreover, we believe it will be challenging to recover the $500 million already spent on the pending BP transaction if it doesn't close. We are lowering our issuer credit rating and unsecured debt ratings on Hilcorp to 'BB-' from 'BB+'. Our ratings on Hilcorp remain on CreditWatch with negative implications as we believe the company will either have higher leverage or weak liquidity if the transaction closes as proposed. The CreditWatch negative reflects our view that we could lower the issuer credit rating on Hilcorp following the acquisition of BP's
