Moody's rates Halcon B2, notes B3

Moody's said it assigned a first time corporate family rating of B2 to Halcon Resources Corp. in conjunction with its plans to issue $500 million of senior unsecured notes to fund a portion of the purchase price of GeoResources, Inc.

The agency said it also assigned a B3 senior unsecured note rating and a SGL-3 speculative grade liquidity rating. The outlook is stable.

"Moody's B2 rating is supported by Halcon's current reserve base and production profile despite the highly leverage balance sheet," said Stuart Miller, a Moody's vice president ó senior analyst, in a news release.

"The company has set aggressive growth targets that may reduce leverage over the next two years. However, there is significant execution risk to achieve this growth," Miller said.

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