S&P cuts Connacher to CCC+

Standard & Poor's said it lowered its long-term corporate credit rating on Connacher Oil and Gas Ltd. to CCC+ from B-.

The outlook is stable.

At the same time, S&P lowered its issue-level rating on the company's second-lien $550 million and C$350 million debt issues to B from B+. The 1 recovery rating on the second-lien debt is unchanged.

"The downgrade reflects our view that the company's persistently high cost structure, limited cash flow generation, and inability to exploit the organic growth potential inherent in its in-situ oil sands resource base are characteristic of the 'CCC+' rating," S&P credit analyst Michelle Dathorne said in a news release.

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