DBRS Finalizes Ratings of Athabasca Oil Corporation at B, Stable Trends

DBRS has today finalized its provisional rating of B on Athabasca Oil Corporation’s (Athabasca or the Company) $550 million of 7.50% Senior Secured Second-Lien Notes due November 19, 2017 (the Notes, with a recovery rating of RR4), as well as the Company’s provisional Issuer Rating of B, both with Stable trends. DBRS assigned a provisional Issuer Rating of B with a Stable trend to the Company on November 2, 2012 (see the related press release), and a provisional rating of B with a Stable trend to the Notes on November 5, 2012.

The Notes, secured by a second-priority lien, will be subordinated to any future senior secured first-lien indebtedness of the Company. DBRS understands that the net proceeds from the issuance will be used for general corporate purposes.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Oil and Gas Companies (April 2011), which can be found on our website under Methodologies.