S&P rates Copano notes B+

Standard & Poor's said it affirmed the BB- corporate credit rating on Copano Energy LLC and the B+ rating on the company's $225 million senior unsecured notes due 2016.

S&P assigned a B+ rating to the company's proposed $100 million senior unsecured notes due 2016.

The outlook is positive.

According to the agency, the ratings reflect a business risk profile that is weak, high infrastructure costs and exposure to the spread between natural gas and natural gas liquids prices.

S&P said these risks are somewhat mitigated by geographic diversity, long-lived reserves, healthy drilling activity in core operating regions and a hedging program consisting of natural gas liquid puts and swaps through 2011, call spread options through 2011, crude oil puts through 2011 and natural gas puts through 2009.

Pro forma for the recent Cantera Natural Gas LLC acquisition, the issuer's debt-to-EBITDA ratio is about 3.6 times.

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