Rosetta Resources (ROSE): An updated profile has been posted under the Watch List Tab. ROSE is in our Small-Cap Growth Portfolio.
I have lowered my valuation to $56.60/share, but I remain very bullish on this one. I think it has a shot at a new high within six months. Read the profile and you will see why.
ROSE
Re: ROSE
Rating Action: Moody's upgrades Rosetta Resources to Ba3; rates new notes B1
Global Credit Research - 21 May 2014
$1.9 billion of rated debt affected
New York, May 21, 2014 -- Moody's Investors Service (Moody's) upgraded Rosetta Resources, Inc.'s (Rosetta) Corporate Family Rating (CFR) to Ba3 from B1. Moody's also upgraded the company's existing senior notes to B1 from B2 and assigned a B1 rating to its proposed senior notes offering of $400 million senior notes due 2024. The net proceeds from the senior notes offering will be primarily used to repay revolver borrowings. Moody's changed the Speculative Grade Liquidity Rating to SGL-3 and the rating outlook to stable.
"The upgrade to Ba3 reflects Rosetta Resources' growing production, good cash margins, and expectation of continued low leverage," said Arvinder Saluja, Moody's Assistant Vice President-Analyst. "We expect the production and reserves related debt metrics to improve over the next 12-18 months, barring any sizeable debt financed acquisition, as the company executes its drilling program in both Eagle Ford and Permian."
Global Credit Research - 21 May 2014
$1.9 billion of rated debt affected
New York, May 21, 2014 -- Moody's Investors Service (Moody's) upgraded Rosetta Resources, Inc.'s (Rosetta) Corporate Family Rating (CFR) to Ba3 from B1. Moody's also upgraded the company's existing senior notes to B1 from B2 and assigned a B1 rating to its proposed senior notes offering of $400 million senior notes due 2024. The net proceeds from the senior notes offering will be primarily used to repay revolver borrowings. Moody's changed the Speculative Grade Liquidity Rating to SGL-3 and the rating outlook to stable.
"The upgrade to Ba3 reflects Rosetta Resources' growing production, good cash margins, and expectation of continued low leverage," said Arvinder Saluja, Moody's Assistant Vice President-Analyst. "We expect the production and reserves related debt metrics to improve over the next 12-18 months, barring any sizeable debt financed acquisition, as the company executes its drilling program in both Eagle Ford and Permian."