S&P gives Resolute Energy notes B-

S&P said it assigned a B- issue-level rating to Resolute Energy Corp.'s proposed $550 million senior unsecured notes due 2025.

The recovery rating remains 4, indicating an expectation of average (30% to 50%; rounded estimate 35%) recovery to creditors in the event of a payment default.

The company will use the proceeds to refinance its existing $525 million 8½% senior unsecured notes due 2020.

“The ratings on Resolute reflect our assessment of the company's vulnerable business risk profile and aggressive financial risk profile, with the company's limited scale of operations relative to higher-rated peers resulting in a negative comparable ratings analysis,” the agency said in a news release.

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