On Oct. 21, 2005, Standard & Poor's Ratings Services placed its 'BBB+' long-term corporate credit and senior unsecured debt ratings on Talisman Energy Inc. on CreditWatch with negative implications following the company's announcement of its intention to acquire U.K.-based Paladin Resources PLC for C$2.521 billion in cash. The acquisition would also include the assumption of other liabilities, which raise the total transaction value to C$2.843 billion. The ratings on Calgary, Alta.-based Talisman Energy Inc. reflect a competitive operating cost profile, a reserve profile that allows an internal drill-bit-focused growth strategy, supplemented with acquisitions, and an intermediate financial risk profile. Risks associated with Talisman's growth strategy are balanced by the company's low geological risk in most of its major projects, its
