S&P lifts Santos hybrid notes

Standard & Poor's said it affirmed the BBB+/A-2 ratings on Santos Ltd. and on the company's senior notes.

The outlook is negative.

S&P also said it raised the rating on the company's hybrid notes to BBB from BB. The ratings also were removed from CreditWatch, where they were placed in April.

"The rating affirmations reflect our assessment that Santos will maintain its satisfactory business risk profile and intermediate financial risk profile despite our expectation of some weakening in the company's credit metrics in 2013 and 2014," said May Zhong, an S&P analyst.

The financial risk profile assessment considers the company's moderate financial policy and track record, the agency said, along with its favorable debt-maturity profile and strong liquidity, which mitigate its weakening credit metrics following reclassification of the company's hybrid security to debt-from-equity.

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