S&P: Vintage ratings unaffected

Standard & Poor's said Monday that the ratings and outlook on Vintage Petroleum Inc. (BB-/negative/--) would remain unchanged following the company's announcement that it plans to acquire producing properties in Argentina for $36.4 million.

S&P said it views such a purchase as modestly unfavorable in that it increases the company's exposure to operational and political risks in Argentina. On the other hand, the production Vintage will gain from this acquisition will offset lost volumes the company would suffer should it complete a contemplated sale of its Canadian operations.

In the longer term, management's willingness to narrow the company's operational focus, including increasing the proportion of U.S. assets in its reserves, could result in rating stability and eventually rating improvement, the agency said.

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