S&P rates Compton Petroleum notes B

Standard & Poor's said assigned a B rating to Compton Petroleum Corp.'s proposed $300 million 7 5/8% senior unsecured notes due 2013 to be issued by subsidiary Compton Petroleum Finance Corp.

S&P also affirmed its B+ long-term corporate credit and B senior unsecured debt ratings on the company.

The outlook is stable.

The ratings reflect the company's regional focus in western Canada, the cash flow shortfalls resulting from its high capital spending and its exposure to hydrocarbon price volatility, the agency said.

S&P said these factors are somewhat offset by Compton's strong internal growth prospects, its near-to-medium-term focus on development drilling and its operating cost profile, which is consistent with the quality of the hydrocarbons being produced and is competitive with other small to midsize producers.

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