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S&P affirms EXCO Resources
Standard & Poor's said it affirmed a BB- corporate credit rating and B issue rating on EXCO Resources Inc., along with its unsecured debt.
All of the ratings were removed from CreditWatch with negative implications, where they were placed in November 2010, S&P said.
The outlook is stable.
The actions follow news that the company concluded its review of strategic alternatives to maximize shareholder value, including assessing the company's chairman buyout proposal, S&P said.
The original buyout proposal contemplated acquisition of all outstanding EXCO shares for $20.50 per share in cash, but was later revised to 81% of EXCO shares at $18.50 per share, of which $13.52 per share would be in cash and about $4.98 per share would be in post-transaction EXCO equity, the agency said.
The ratings reflect what is considered to be the company's aggressive financial risk profile and weak business risk profile, S&P said.
EXCO's midsize reserve base is expected to experience solid growth and production from its promising shale plays, the agency said, but the company's focus on natural gas leaves it susceptible to the weak price environment.
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