S&P gives Berry Petroleum BB-, notes B

Standard & Poor's said it assigned its BB- corporate credit rating to Berry Petroleum Corp. and its B rating to Berry's proposed $200 million senior subordinated notes due 2016.

The outlook is stable.

The agency noted that the ratings on Berry reflect its midsize reserve base, high lifting costs, concentration of production and the highly cyclical nature of the E&P industry.

These weaknesses are tempered by the relatively low-risk nature of the company's reserve base, attractive growth opportunities, competitive finding and development costs and a fairly moderate capital structure, S&P added.

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