S&P assigns Quicksilver Resources BB-, notes B

Standard & Poor's said it assigned its BB- corporate credit rating to Quicksilver Resources Inc. and its B rating to Quicksilver's proposed $300 million senior subordinated notes due 2016.

The outlook is stable.

The ratings on Quicksilver reflect the company's midsize reserve base, modest geographic diversification, high financial leverage and an aggressive drilling program in a rising service cost environment, the agency said.

However, these weaknesses are somewhat tempered by the company's high percentage of proved developed reserves (77%) and company-operated properties (71%) that require relatively modest future development expenses, which have a long reserve life of about 22 years and provide the company with meaningful operational and financial flexibility, S&P noted.

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