Moody's cuts Houston Exploration view to developing

Moody's Investors Service said it changed the outlook on The Houston Exploration Co.'s Ba3 corporate family rating and B2 note ratings to developing from stable.

Also affirmed were the $175 million senior subordinated notes due 2013 at B2.

The outlook change follows the company's announcement of its planned divestiture of the Gulf of Mexico properties and authorization for a new $200 million stock repurchase program.

In assessing the developing outlook, Moody's said it will review the timing and amount of proceeds from the Gulf of Mexico disposition, the potential use of proceeds including possible acquisitions, the pace of the stock buyback program, the company's capital spending, management's plans for further debt reduction, productivity on the remaining properties and the impact of the proposed changes to its hedging program.

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