S&P rates Mariner Energy notes B-

Standard & Poor's said it assigned a B corporate credit rating to Mariner Energy Inc. and a B- senior unsecured debt rating to Mariner's proposed $250 million senior unsecured notes due 2013. The outlook is stable.

Proceeds from the notes will be used to repay outstanding borrowings on Mariner's credit facility.

S&P said the rating on the notes have been notched to reflect the priority debt of the credit facility, secured by a first lien on all oil and gas properties.

Ratings on Mariner Energy reflect its aggressive growth and exploration strategy, high debt leverage and short reserve life reflective of its small, concentrated reserve base focused in the Gulf of Mexico, the agency said.

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