S&P lifts Harvest Natural

Standard & Poor's said it raised its corporate credit rating and senior unsecured rating on Harvest Natural Resources Inc. to B from B- following the upgrade of the Bolivarian Republic of Venezuela to B from B-.

The rating on Harvest is capped by the rating on Venezuela due to the company's reliance for 100% of earnings and cash flow from Venezuela.

The outlook is stable.

S&P said the rating on Harvest reflects its position as a small, independent exploration and production company with significant sovereign risk due to the dependence on Venezuela for 100% of its earnings and cash flow, as well as an acquisition strategy that favors reserves in emerging markets. These risks are somewhat offset by moderate financial leverage and solid liquidity.

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