Moody’s assigns RSP Permian notes B3

Moody's Investors Service said it assigned a B3 rating to RSP Permian, Inc.'s proposed offering of $450 million senior unsecured notes.

The agency also assigned the company a B2 corporate family rating, a SGL-2 speculative grade liquidity rating and a stable outlook.

Notes proceeds will be used to repay borrowings currently outstanding on the revolving credit facility and to pre-fund a portion of the drilling program.

"Through a series of transactions beginning in 2013, RSP has assembled a meaningful acreage position in the Midland Basin," Moody's analyst Michael Sabella said in a news release. "This notes offering will provide additional capital for the continued funding of the rapid development of the acreage in West Texas, which offers substantial growth opportunities for the company. The development of the assets will require significant capital in addition to this offering, and Moody's anticipates that RSP will outspend cash flow through 2015 and beyond."

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