S&P Boosts EXCO Resources Credit Rating

DALLAS (AP) — Standard & Poor's Ratings Services said Wednesday it has increased the corporate credit rating it assigns to EXCO Resources Inc. after the petroleum company sold some of its assets.

EXCO moved up to a "B+" rating from a "B'' rating.

Standard & Poor's praised EXCO's sale of assets including a $356.1 million transaction for various properties to an affiliate of Encore Acquisition Company. As a result, EXCO is in a better position to refinance debts including a $300 million senior unsecured term loan, Standard & Poor's credit analyst Patrick Y. Lee said.

Standard & Poor's said EXCO's new rating reflects the company's high, though reduced, debt and the generally weak outlook for natural gas prices. Those weaknesses are offset in part by EXCO's diverse base of natural gas reserves and its growth prospects and hedging practices.