Vanguard Natural Resources (VNR) has gotten more breathing room following a credit review of the oil and gas partnership's borrowing base last week. The terms weren't particularly favorable: the borrowing base was reduced by 26 percent to $1.3 billion which means the partnership is now overdrawn by nearly $100 million, not including $40 million the company has in cash on hand. Vanguard Natural Resources was granted six months to pay up the difference, which takes them to December, roughly when it is subject to its autumn credit review. But, some analysts have taken a positive view of this partnership, which, like other master limited partnerships, was particularly attractive to dividend hungry investors. Just last week, an analyst team at Stifel Nicolaus raised its rating on the company to HOLD from SELL and said, 'near-term risks for the partnership are removed,' following the credit review. In a call with analysts last month, CEO Scott Smith said, 'This is not the first down cycle we've been through, and as history has shown, it certainly will not be the last.'
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