S&P cuts Paramount notes

Standard & Poor's said it lowered its long-term corporate credit ratings on Paramount Resources Ltd. to B- from B. The outlook is negative.

At the same time, the agency said it lowered its issue ratings on the company's senior unsecured notes to B from B+. The recovery rating on the notes remains at 2.

"The downgrade reflects our expectation that Paramount's cash flow will continue to deteriorate through 2012, due to sustained weak natural gas prices, high levered costs and the company's significant capital expenditure plans," said S&P credit analyst Aniki Saha-Yannopoulos in a news release.

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