S&P ups Cimarex Energy

Standard & Poor's said it raised the corporate credit and senior unsecured ratings on Cimarex Energy Co. to BB from BB- and 3 recovery rating.

The outlook is stable.

The upgrade reflects Cimarex's commitment to a fairly conservative financial policy and low debt leverage to offset its exposure to commodity price swings, according to S&P.

Ratings reflect the company's position as a midsize exploration and production company in the volatile oil and natural gas industry, and the risks associated with its aggressive growth strategy, moderate reserve life and relatively high-cost operations, the agency said, mitigated largely by its moderate financial policies.

As of Dec. 31, the issuer's debt-to-EBITDAX ratio was less than 1 times.

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