S&P affirms Chaparral, gives notes CCC+

Standard & Poor's said it affirmed its B corporate credit rating and CCC+ senior unsecured ratings on Chaparral Energy Inc. following the announcement that Chaparral is issuing $275 million senior notes due 2017.

The notes are assigned a rating of CCC+.

At the same time, the outlook was revised to stable from negative.

S&P said that the stable outlook reflects the improved liquidity that will result from the offering after Chaparral applies proceeds toward repaying outstanding borrowings from its credit facility.

According to the agency, the ratings on Chaparral reflect concerns associated with its aggressive growth strategy, high debt leverage, elevated cost structure and small reserve base.

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