S&P lifts Kodiak Oil debt; view to positive

Standard & Poor's said it affirmed the B corporate credit rating on Kodiak Oil & Gas and revised the outlook to positive from stable.

S&P also said it raised the rating on the company's senior unsecured debt to B- from CCC+ and revised the recovery rating to 5, indicating 10% to 30% expected recovery in a default, from 6.

The positive outlook reflects Kodiak's success developing its Bakken reserves and an expectation for continued production and reserve growth in 2013, S&P said.

If Kodiak can maintain its pace of growth and maintain solid financial measures, the agency said it could raise the ratings on the company in 2013.

The ratings consider its aggressive financial risk profile, vulnerable business risk profile and adequate liquidity assessment, S&P said.

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