S&P assigns W&T notes B-

Standard & Poor's said it assigned its B- rating to W&T Offshore Inc.'s proposed $450 million senior notes due 2014.

At the same time, the agency said it affirmed the corporate credit rating of B and revised the outlook to positive from stable to reflect W&T's material debt repayment and solid operating performance in 2006.

The B corporate credit rating on W&T reflects several concerns, including that W&T operates exclusively in the offshore Gulf of Mexico, which S&P said it views as a challenging operating environment due to the steep decline curves and high reinvestment requirements, and the E&P industry is cyclical and capital intensive.

These concerns are only partially offset by the following strengths: W&T has a long and successful operating history in the Gulf of Mexico and the company had good drilling success in 2006.

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