Moody's rates Range notes Ba3

Moody's Investors Service said it rated Range Resources Corp.'s new senior subordinated notes due 2021 Ba3 (LGD4, 69%).

The outlook is stable.

Proceeds from the new notes will be used to fund a tender offer for the $150 million of 6 3/8% senior subordinated notes due 2015 and the $250 million of 7½% senior subordinated notes due 2016.

The Ba3 rating for the senior subordinated notes reflects the attractive reserve position and low finding cost for Range as well as the improved liquidity position resulting from the recent sale of the Barnett Shale assets for $900 million, the agency said.

The sale of the Barnett Shale will fund the company's aggressive development plans in 2011 alleviating one of the near-term concerns, the agency added. However, there is considerable execution risk and a degree of concentration risk associated with the company's intense focus on rapidly developing its Appalachian assets.

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