S&P cuts EXCO to B

Standard & Poor's said it lowered its corporate credit rating on oil and gas exploration and production company EXCO Resources Inc. to B from B+.

S&P said it also affirmed its B rating on the company's $450 million in senior unsecured notes due to EXCO's limited ability to incur senior secured debt under its current financing arrangements.

The outlook is developing.

The ratings reflect a vulnerable business profile, high debt leverage, an acquisitive growth strategy and aggressive financial policies, S&P said.

These credit weaknesses are somewhat offset by a largely development-focused operating strategy, a significant hedging program to help ensure per unit economics and a long reserve life, S&P said.

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