S&P cuts Rosetta debt, rates notes B+

Standard & Poor's said it lowered its rating on Rosetta Resources Inc.'s senior unsecured debt to B+ (one notch below the corporate credit rating) from BB- and revised its recovery rating to 5, indicating an expectation of modest recovery (10%-30%) in the event of a payment default, from 4.

At the same time, the agency assigned its B+ senior unsecured issue rating to Rosetta's proposed $400 million of senior notes due 2024. The recovery rating on the debt is 5, indicating an expectation of modest recovery (10%-30%) in the event of a payment default.

The BB- corporate credit rating and stable outlook are unaffected by the transaction.

Proceeds are expected to be used to repay outstanding borrowings under the company's credit facility and for general purposes.

Moody's said the downgrade reflects its lower recovery expectations for Rosetta's senior unsecured obligations following the issuance of the proposed $400 million notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.