S&P cuts Halcon Resources debt

S&P said it revised its recovery rating on Halcon Resources Corp.'s senior unsecured debt to 5 from 4 and, as a result, lowered the issue-level rating one notch to CCC+ from B-.

The 5 recovery rating indicates an expectation for modest (10%-30%; rounded estimate: 15%) recovery in the event of a default.

The B- corporate credit rating and stable outlook on Halcon are unchanged.

“The downgrade reflects our revised expectation of Halcon's recovery prospects following the significant decline in the company's reserve valuation after it sold its assets in the Bakken,” the agency said in a news release.

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