S&P downgrades Hunt Oil

Standard & Poor's said it lowered its corporate credit rating on Hunt Oil Co. to BBB from BBB+.

The outlook is negative.

The downgrade reflects the agency's assessment that the underperformance of Hunt's core North American exploration and production business, coupled with escalation of construction costs associated with major liquefied natural gas projects, lessens the company's ability to fund the liquefied natural gas projects' development without incurring meaningful additional net debt leverage.

The rating on Hunt is supported by its satisfactory business risk profile as a small, privately held independent exploration and production company with internationally diversified, short-lived developed reserves; its intermediate financial risk profile based on substantial financial resources; and its history of achieving favorable results in challenging international environments, S&P said.

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