S&P raises Chesapeake Energy

Standard & Poor's said it raised its corporate credit rating and senior unsecured debt rating on Chesapeake Energy Corp. to BB from BB- and affirmed its B-1 short-term rating.

The outlook was also revised to stable from positive.

S&P said the ratings action is based on the company's solid operating performance, increased operational scale and favorable intermediate-term fundamentals for producers in the domestic natural gas market.

The ratings reflect a highly leveraged financial profile, risks associated with an aggressive acquisitive growth strategy and exposure to volatile oil and natural gas prices. These concerns are only partially offset by a large and attractive reserve base with favorable growth prospects, good production visibility and competitive economics, S&P said.

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