Moody’s revises EnQuest view to negative

Moody's Investors Service said it affirmed B1 corporate family rating and B1-PD probability of default rating of EnQuest plc and converted to definitive B3/LGD5 rating on its senior notes.

The outlook was changed to negative from stable.

"The negative outlook reflects our expectation that lower oil prices will translate in lower earnings and weaker leverage metrics in 2015, even as EnQuest is set to deliver strong growth in production volumes on the back of its Alma/Galia field development scheduled to come on stream in mid 2015," Elena Nadtotchi, moody’s vice president and senior credit officer and the lead analyst on EnQuest, said in a news release.

"The B1 corporate family rating is materially supported by the expectation that EnQuest will strongly execute on its large development project at Kraken and deliver sustained high level of growth in production in 2016, that will drive the recovery in the leverage profile in the next 12-18 months."

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