Moody's assigns B3 to EnQuest notes

Moody's Investors Service said it placed on review with direction uncertain EnQuest plc's B3 corporate family rating, B3-PD probability of default rating and the Caa1 rating assigned to the backed senior unsecured high-yield notes due 2023.

Concurrently, Moody's assigned a B3 rating to the proposed backed senior unsecured bond issuance due 2027.

The outlook has changed to ratings under review from stable, the agency said.

EnQuest seeks to fully refinance its outstanding senior unsecured notes due October 2023 through a combination of new senior unsecured notes, drawings under its reserve base lending facility and available cash balances.

“Today's action balances the expected improvement in EnQuest's liquidity position upon successful execution of the planned refinancing transaction along with financial metrics progressively strengthening over the next 12-18 months under Moody's base case scenario,” Moody’s said in a news release.

“At the same time, the rating action also reflects the uncertainty related to the refinancing because of challenging conditions of the debt capital markets. Should the refinancing not be successful, EnQuest will face debt maturities of around $0.9 billion due in a year's time.”

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