S&P puts EXCO Resources on watch

Standard & Poor's said it placed its B corporate credit rating and B- senior unsecured ratings on EXCO Resources Inc. on CreditWatch with negative implications following the company's announced $1.6 billion cash acquisition of certain oil and gas properties in Jackson Parish, La., from Anadarko Petroleum Corp. (BBB-/stable/A-3).

The negative CreditWatch listing reflects concern over the possible resulting high debt burden, which could weaken EXCO's credit measures to a level inconsistent with expectations for the current rating, the agency said.

In addition, S&P noted it remains concerned about management's aggressive growth strategy and its ability to execute a financing plan that will reduce debt from pro forma levels, both of which will be key factors in resolving the CreditWatch listing.

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