Fitch puts Resolute Energy on positive watch

Fitch Ratings said it placed Resolute Energy Corp.'s B- long-term issuer default rating on Rating Watch positive following news that Cimarex Energy Co.'s proposed acquisition of Resolute for $1.6 billion.

The senior secured and senior unsecured debt ratings also were placed on positive watch.

Fitch said it expects to resolve the watch upon completion of the transaction, which is currently expected to close in the first quarter of 2019.

The agency said it anticipates Cimarex will assume or retire Resolute's existing debt, which Fitch believes will result in stronger credit quality for Resolute.

If the acquisition fails to close, the positive watch will be removed with Resolute's ratings likely to remain at B-, Fitch said.

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