S&P raises St. Mary Land

Standard & Poor's said it raised its corporate credit rating on St. Mary Land & Exploration Co. to BB from BB-.

The agency said that the company's moderate financial leverage, its satisfactory 2007 operating results and our expectation that its 2008 capital budget will stay within internally generated cash flow spurred the upgrade.

The outlook is stable.

According to S&P, the rating on St. Mary reflects the company's midsize reserve base, average cost structure and acquisitive growth strategy, as well as the E&P industry's highly cyclical and capital-intensive nature while these weaknesses are partially offset by the company's good track record of internal reserve replacement and production growth, balanced production mix between natural gas and oil and moderate financial leverage.

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