S&P rates Rosetta notes B+

Standard & Poor's said it assigned a B+ rating to Rosetta Resources Inc.'s proposed $450 million unsecured note offering due 2022.

The agency also said it assigned a 4 recovery rating to this debt, indicating 30% to 50% expected default recovery.

The company's B+ corporate credit rating and stable outlook remains unchanged.

The proceeds will be used to repay borrowings on its credit facility and for general corporate purposes.

The ratings reflect the company's relatively small proven reserve base relative to peers, aggressive growth strategy and substantial proportion of undeveloped reserves, said Marc Bromberg, an S&P analyst.

The ratings also consider its weak business risk profile, aggressive financial risk profile and adequate sources of liquidity, Bromberg said.

The ratings also take into account the company's exposure to robust crude oil prices, low cost position and healthy credit protection measures, S&P said.

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