S&P affirms Baytex Energy Trust

Standard & Poor's said it affirmed its B+ long-term corporate credit and B- subordinated debt ratings on Baytex Energy Trust following the trust's announcement of a C$73 million property acquisition in the Celtic area of Saskatchewan.

The outlook is negative.

S&P said the ratings on Baytex reflect the trust's smaller proven reserves base and average daily production, its below-average reserve life index, its narrow regional focus, and high capital structure.

These factors, which hamper the ratings, are offset by the good development opportunities associated with Baytex's existing portfolio of assets and the trust's competitive operating cost profile, the agency said.

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