Moody’s rates Resolute Energy notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Resolute Energy Corp.’s proposed offering of senior notes due 2025.

The B3 corporate family rating, B3-PD probability of default rating, SGL-3 speculative grade liquidity rating and stable outlook are not affected.

Resolute intends to use the net proceeds issue to redeem its 8˝% senior notes due 2020.

“Resolute's senior notes are rated Caa1, reflecting their subordinated position to its $210 million secured credit facility's priority claim to the company's assets,” Moody’s said in a news release.

“The size of the senior secured claims relative to Resolute's outstanding senior unsecured obligations results in the notes being rated one notch below the B3 CFR, consistent with Moody's Loss Given Default (LGD) methodology.”

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