S&P lowers Exco, debt

Standard & Poor's said it lowered its corporate credit rating on Exco Resources Inc. to B+ from BB-. The outlook is stable.

At the same time, the agency said it lowered its issue rating on Exco's senior unsecured debt to B- from B. The recovery rating remains 6, indicating an expectation of negligible recovery in the event of a payment default.

"The downgrade reflects our expectation that natural gas prices will remain weak over the next few years, pressuring profitability," said S&P credit analyst Marc Bromberg in a news release.

According to S&P, natural gas represents nearly all of Exco's production and reserves, and the company does not have any meaningful crude oil or natural gas liquid prospects to help shift its production mix.

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