Moody's gives B2 to Gran Tierra, notes

Moody's Investors Service said it assigned a B2 corporate family rating to Gran Tierra Energy Inc. and its up to $600 million in amortizing senior secured notes due 2029 for the exchange of the 6¼% senior unsecured notes due 2025 issued by Gran Tierra Energy International Holdings Ltd. and 7¾% senior unsecured notes due 2027 issued by Gran Tierra. This is the first time that Moody's rates Gran Tierra.

“The B2 indicative ratings on Gran Tierra and on its proposed notes are based on the company's small asset base; geographic asset and production concentration in Colombia (Baa2 stable); as well as execution risk at existing operations and elevated event risk from future growth.

“These factors are balanced by strong assets in Colombia's Middle Magdalena Valley, which has been in operation for decades; Moody's expectation of stable production and strong commodities prices, which support solid cash flow generation and credit metrics in 2022-23 for the B2 rating category; financial policies that protect creditors, including oil price hedging and no dividend payments in the foreseeable future; and experienced management team,” the agency said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.