S&P raises Venoco

Standard & Poor's said it raised the corporate credit rating on Venoco Inc. to B from B-.

In addition, a B- issue rating and 3 recovery rating were assigned to Venoco's proposed $500 million second-lien term loan facility, the agency said.

Venoco's existing $150 million senior notes were affirmed at B- and assigned a 3 recovery rating, the agency noted.

The rating actions follow a full review of Venoco after the company announced in April that it will be pursuing two acquisitions, the agency said, adding that the upgrade reflects Venoco's improving oil and gas reserve scale and diversification, stronger operating performance over the past year with regard to reserve replacement costs and production growth and the expectation that leverage and coverage measures will remain within acceptable tolerances for the rating over the intermediate term.

The outlook is stable.

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