S&P affirms Houston Exploration

Standard & Poor's said it affirmed its BB corporate credit rating on The Houston Exploration Co. S&P also affirmed its BB senior unsecured and B+ subordinated ratings for Houston Exploration.

The outlook is stable.

S&P said the ratings on exploration and production company Houston Exploration reflect a below-average business profile, largely due to the cyclical and capital-intensive nature of the petroleum industry, and a moderate financial profile.

Although Houston Exploration has manageable debt levels relative to reserves and EBITDA, it has a relatively small reserve base and a rapid production-decline profile that necessitates a large capital program to maintain production levels.

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