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Moody's rates Stone notes Caa1
Moody's Investors Service said it assigned a Caa1 rating to Stone Energy Corp.'s new notes, which are a $100 million add-on to the company's existing $275 million 8 5/8% senior notes due 2017.
The outlook remains stable.
The proceeds of the offering will initially be used for general corporate purposes.
The rating reflects the company's reserve concentration in the Gulf of Mexico, which has a short reserve life due to rapid production decline rates; extremely high finding and development costs over the last three years; high debt and weak cash flow coverage, the agency said.
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