On June 25, 2008, Standard&Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Calgary, Alta.-based Talisman Energy Inc. to 'BBB' from 'BBB+' following a full review of the company's overall credit profile. The outlook is stable. The ratings on Talisman reflect a well-diversified portfolio of upstream assets, the growth potential inherent in its undeveloped acreage, and a history of maintaining fairly moderate financial policies. Somewhat offsetting these strengths is a continuing trend of weak reserve replacement economics, which result in falling internal reserve replacement statistics, despite relatively high exploration and development spending. As Talisman continues to redeploy substantially all of its operating cash flows into its exploration and development activities, there was little opportunity
