Moody's confirms Vintage ratings

Moody's Investors Service said it confirmed Vintage Petroleum's ratings, with a negative outlook.

Ratings support: benefits of a two-year asset rationalization and heavy debt reduction; still substantial proven developed reserve base; and adequate liquidity in the aftermath of Vintage's failed May 2001 $593 million debt-funded Genesis acquisition in Canada and 2001-2003 Argentine political and fiscal crisis.

Ratings restraints: high unit-full-cycle costs; a production bottom is not expected until mid-2004; significant discount of Vintage's realized prices below market benchmarks; and expected increased acquisition risk.

Ratings confirmed with a negative outlook include Vintage's Ba3 rated $350 million of 8.25% senior unsecured notes maturing 2012, B1 senior subordinated note ratings for $200 million of 7.875% notes due 2011, and Ba3 senior unsecured issuer rating and Ba2 senior implied rating.

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