S&P rates Venoco notes CCC+

Standard & Poor's said it assigned its B- corporate credit rating to Venoco Inc. and its CCC+ rating to the company's $150 million 10-year senior unsecured notes.

The outlook is stable.

S&P said the ratings on Venoco reflect its highly leveraged financial profile, small geographically concentrated reserve base, an ownership structure that may not be beneficial to bondholders, and participation in the highly volatile exploration and production segment of the oil and gas industry. The ratings to a lesser degree also reflect a somewhat challenging legal and regulatory environment in California. Significant hedging of proved production volumes, a long reserve life, and a high percentage of company operated properties do not offset these concerns.

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