S&P: Encore unchanged

Standard & Poor's said that Encore Acquisition Co.'s (BB-/negative) announcement that it will sell oil- and gas-producing properties in the mid-continent region for $300 million has no immediate effect on the ratings or outlook on the company.

The company said that it will use proceeds from the sale of the noncore assets to reduce debt incurred making two sizeable acquisitions earlier this year, the agency noted.

S&P said it views the transaction as favorable to the company's credit level, but it expects Encore to reduce financial leverage further before the outlook can be revised to stable.

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