Fitch alters Georgian Oil view to negative

Fitch Ratings said it revised the outlook on Georgian Oil and Gas Corp. JSC's long-term foreign-currency issuer default rating to negative from stable and affirmed the IDR at BB.

The outlook revision follows Georgia's sovereign rating action. Fitch said it rates the company by applying a one-notch uplift to its standalone credit profile of bb- to arrive at the same rating as Georgia, the ultimate source of potential support to the company.

“The negative outlook also captures GOGC's weak liquidity. At end-March 2020, it was insufficient to fully cover the forthcoming $250 million of the eurobond repayments in April 2021. Failure by the company to secure refinancing, negotiations for which we believe are well-advanced, may result in a negative rating action,” Fitch said in a press release.

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