Moody's gives B2 to Rosetta notes

Moody's Investors Service said it assigned a B2 rating to Rosetta Resources, Inc.'s proposed $450 million senior unsecured notes.

The company expects to use the net proceeds from the offering will be used to repay borrowings under its revolving credit facility and for general corporate purposes.

The outlook is positive.

Moody's said the B2 rating for the proposed senior notes reflects their unsecured nature and therefore subordination to the senior secured credit facility's potential priority claim to the company's assets.

The company has an $800 million senior secured revolving credit facility due 2018. The size of the potential senior secured claims relative to the unsecured notes outstanding results in the senior notes being notched one rating below the B1 corporate family rating under Moody's Loss Given Default Methodology.

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