We expect Talisman Energy Inc.'s operating performance, specifically its production and cost profile, to show limited improvement in the next 18-24 months, constraining any significant cash-flow growth. At the same time, we expect Talisman to significantly outspend internally generated cash flow through 2015. Even if the company meets its US$2 billion asset sale target in the next 12-18 months, we do not think its credit profile is commensurate with that of its 'BBB' rated peers. As a result, we are lowering our long-term corporate credit and senior unsecured debt ratings on Talisman to 'BBB-' from 'BBB'. We are also lowering our global scale rating on its preferred stock to 'BB' from 'BB+' and its Canada scale rating on the preferred
