S&P puts Resolute Energy on positive watch

S&P said it placed its ratings, including its B- issuer credit rating, on Resolute Energy Corp. on CreditWatch with positive implications.

At the same time, S&P placed the B- issue-level rating on the company’s senior unsecured notes on CreditWatch with positive implications. The recovery rating on this debt remains 4, indicating an expectation of an average (30%-50%; rounded estimate: 35%) recovery to creditors in the event of a payment default.

“The CreditWatch positive placement reflects the likelihood that we will raise the ratings on REN following its acquisition by Cimarex Energy (BBB-/stable/--). Cimarex plans to acquire REN in a cash and stock transaction for approximately $1.6 billion, including the assumption of $710 million of REN's debt,” S&P said in a news release.

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