S&P rates Linn Energy notes B

Standard & Poor's said it affirmed the B+ corporate credit on Linn Energy LLC and raised its unsecured debt to B from B- and revised the recovery rating to 5 from 6.

The agency assigned a B issue rating on the company's proposed $500 million senior unsecured notes with 5 recovery rating.

The outlook is stable.

S&P said it considers the company's HighMount acquisition and debt and equity transactions to be consistent with its expectations.

Ratings reflect the company's midsize reserve base, aggressive financial leverage and substantial quarterly distributions paid to unitholders, the agency said.

The low geological risk inherent in the company's reserve base, balanced production mix between natural gas and liquids, and substantial commodity price hedges partially offset these weaknesses, the agency noted.

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