S&P ups Compton Petroleum outlook to stable

Standard & Poor's said it revised its outlook on Compton Petroleum Corp. to stable from negative.

At the same time, S&P said it affirmed its B long-term corporate credit rating on the company and its B- senior unsecured debt rating on subsidiary Compton Petroleum Finance Corp.

The agency added that the 5 recovery rating on the senior unsecured debt is unchanged and indicates its expectation for modest recovery in the event of default.

"The outlook revision reflects our view that the debt reduction and improved liquidity has removed some of the near-term credit pressure on Compton," said S&P credit analyst Jamie Koutsoukis.

"However, should the company outspend cash flow in 2010 and increase debt levels, a negative rating action is likely," Koutsoukis added.

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