S&P lowers Comstock, debt

Standard & Poor's said it lowered its corporate credit rating on Comstock Resources Inc. to B+ from BB-. The outlook is negative.

The agency said it also lowered the issue rating on the company's senior unsecured debt to B from B+. The recovery rating is 5, indicating an expectation of modest recovery for bondholders in the event of a payment default.

S&P said the downgrade follows the agency's recent revision of natural gas price assumptions.

"We expect that natural gas prices will remain weak over the next one to two years, which will pressure the company's profitability while it shifts capital to oil projects," said S&P credit analyst Carin Dehne-Kiley in a news release.

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