S&P assigns Cimarex notes BB-

Standard & Poor's said it assigned its BB- senior unsecured rating to Cimarex Energy Co.'s proposed $300 million senior unsecured notes due 2017.

At the same time, S&P said it affirmed its BB- corporate credit rating on the company.

The outlook is positive.

Cimarex intends to use the proceeds to redeem the outstanding $195 million 9.6% senior notes acquired with the Magnum Hunter Resources Inc. transaction, the agency noted.

S&P added that the ratings on Cimarex reflect its position as a midsize exploration and production company in the volatile oil and natural gas industry, as well as the risks associated with its aggressive growth strategy, moderate-lived reserve base and relatively high-cost operations, somewhat mitigated by moderate financial policies.

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