S&P lifts Georgian Oil view to stable

S&P it revised the outlook on Georgian Oil and Gas Corp. JSC to stable from negative.

The agency said it affirmed the B+ long-term and B short-term corporate credit ratings.

The outlook revision reflects an expectation that higher EBITDA generation should help Georgian Oil accommodate its capital expenditure projects without a material increase in leverage, S&P said.

The agency said it now expects the company’s debt-to-EBITDA ratio to stay less than 4x in 2016 through 2018.

The ratings are constrained by the company's reliance on several large long-term contracts for gas supply from Russia and Azerbaijan, S&P said.

Constraining factors also include the company's lack of long-term strategic planning and a history of unexpected changes in the government's strategic decisions for Georgian Oil, the agency said.

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