S&P raises Baytex

Standard & Poor's said it raised its long-term corporate credit rating on Baytex Energy Trust to BB- from B+ and its subordinated debt rating to B+ from B, following a review of the company's current and prospective business risk and financial risk profiles.

The outlook is stable.

According to the agency, the ratings on Baytex reflect the trust's midsize reserve base, its concentration of production and regional focus and the cyclical nature of the exploration and production industry.

These factors, which hamper the ratings, are tempered by the relatively low-risk nature of the trust's reserve base, the good development opportunities associated with Baytex's existing portfolio of assets and moderate capital structure for the ratings, the agency noted.

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