S&P rates Petrohawk B-, affirms Mission notes at CCC

Standard & Poor's said it assigned its B- corporate credit rating to Petrohawk Energy Corp. and withdrew its B- corporate credit rating on Mission Resources Inc., upon Petrohawk's acquisition of Mission. The outlook is stable.

In addition, S&P said it removed Mission's outstanding $130 million senior unsecured notes due 2011 from CreditWatch with negative implications and affirmed its CCC rating on the notes. Mission's senior notes will be assumed and guaranteed by Petrohawk after the Mission acquisition.

S&P said the ratings on Petrohawk are based on a highly leveraged financial profile, an aggressive growth strategy and a high pro forma all-in cost structure. A geographically diverse reserve base, a moderate reserve life, and an experienced management team do not offset these concerns, the agency added.

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