S&P downgrades Tullow Oil

Standard & Poor's said it lowered its long-term corporate credit rating on Tullow Oil plc to BB- from BB.

The outlook is stable.

S&P said the downgrade reflects its view that Tullow will likely report credit measures in line with a BB- rating and that its reliance on cash flows from Ghana is likely to increase.

This follows the company's recent announcement that it could potentially retain its full interest in the Ghana-based Tweneboa-Enyenra-Ntomme (TEN) oilfield development.

As it previously assumed that a sale of part of its interest would take place, S&P sees this as effectively increasing Tullow's investment in production assets in Ghana, and therefore its exposure to the country.

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