Fitch keeps BG Energy on watch

Fitch Ratings said it maintained BG Energy Holdings Ltd.’s A- long-term issuer default rating on Rating Watch Positive on its expected acquisition by Royal Dutch Shell plc (AA/Rating Watch Negative).

The positive watch reflects the agency’s expectation that the proposed acquisition of BG by Shell will significantly strengthen BG's credit profile.

BG's post-acquisition rating will depend on Fitch’s assessment of legal, strategic and operational ties between Shell and BG, as well as on Shell's post-acquisition rating. It is likely that Fitch may maintain a one-notch differential between Shell and BG's ratings after the acquisition, in absence of legal ties.

The deal is expected to close in early 2016 and is subject to remaining regulatory clearances from authorities in Australia and China, as well as approvals from the shareholders of the two companies.

© 2015 Prospect News.
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