S&P lifts Halcon Resources notes to B-

S&P said it raised its issue-level rating on Halcon Resources Corp.'s $625 million senior notes due 2025 to B- from CCC+ and revised the recovery rating to 4 from 5. The 4 recovery rating indicates an expectation for average recovery (30%-50%; rounded estimate: 35%) of principal in the event of a payment default.

“The revision reflects an increase in Halcon Resources' improved PV-10 valuation of its proved reserves based on our recovery-case assumptions. This more than offsets an increase in the company borrowing base, to $275 million from $200 million, and our expectation that it will borrow 100% of its base in the event of a default,” S&P said in a news release.

© 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.