S&P rates Paramount notes B

Standard & Poor's said it assigned its B issue-level rating and 2 recovery rating to Paramount Resources Ltd.'s proposed C$250 million senior unsecured notes.

The 2 recovery rating indicates an expectation of substantial recovery in the event of a default.

"The B rating and negative outlook on Paramount reflect our view of the company's vulnerable business risk profile and highly leveraged financial risk profile," said S&P credit analyst Aniki Saha-Yannopoulos in a news release.

The ratings also reflect what S&P said it views as the company's weak credit measures, high capital expenditure in the near-term, meaningful exposure to low natural gas prices and high-cost structure.

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