S&P lifts Athabasca Oil, rates notes B+

S&P said it raised its long-term corporate credit rating on Athabasca Oil Corp. to B- from CCC+.

The outlook is stable.

At the same time, the agency raised its issue-level rating on the company's senior secured second-line debt to B+ from B. The recovery rating is unchanged at 1, indicating very high (90%-100%) recovery in a default scenario.

S&P also assigned its B+ issue-level rating and 1 recovery rating to the company's proposed $450 million senior secured second-lien notes.

"The upgrade reflects our view that the recently acquired Leismer assets and Athabasca's extended debt maturity will result in a stronger cash flow profile and capital structure," S&P credit analyst Wendell Sacramoni said in a news release.

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