S&P upgrades Halcon Resources' credit rating to B- from SD (selective default) on Tuesday. The firm said the oil company is unlikely to enter into more debt-for-equity transactions which could be seen as distressed exchanges.
S&P's outlook for Halcon Resources remain negative due to its view that the company's leverage could deteriorate beyond current expectation and approach unsustainable levels.
Rising oil prices could also be a cause for Halcon Resources' gains. WTI crude oil for August delivery was up 1% to $61 a barrel late Tuesday morning, and Brent crude oil for August delivery was up 1.5% to $64.27 a barrel.
TheStreet Ratings team rates HALCON RESOURCES CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALCON RESOURCES CORP (HK) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."