S&P rates Halcon Resources debt B-

S&P said it assigned a B- rating and 3 recovery rating to Halcon Resources Corp.'s new senior unsecured debt.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The agency also said it raised the rating to B+ from B- and revised the recovery rating to 1 from 3 on the company's secured second-lien debt.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The corporate credit rating remains at B- with a stable outlook.

The higher rating on the company's second-lien secured debt, and revision of the recovery rating, considers a recent announcement that the company will be issuing unsecured debt to fund the repurchase of existing second-lien notes, which had been scheduled to mature in 2020, S&P said.

As a result, the recovery prospects on the company's outstanding second-lien secured notes due in 2022 will improve, the agency said.

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