S&P rates Comstock notes B

Standard & Poor's said it assigned its B senior unsecured rating to Comstock Resources Inc.'s (BB-/stable/--) $175 million 6.87% senior notes due 2012.

The outlook remains stable.

S&P said the ratings on Comstock reflect challenges the company faces as an independent oil and gas exploration and production company with a small, concentrated reserve base (617 billion cubic feet equivalent at year-end 2003; 81% natural gas; 67% proved developed) and high debt leverage. These risks are partially offset by a competitive cost structure and substantial operating leverage to North American natural gas, which has attractive medium-term fundamentals.

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