Moody's ups Harvest Natural

Moody's Investors Service said it upgraded the senior implied rating for Harvest Natural Resources Inc. to B3 from Caa1. Moody's also upgraded and removed the notching of the 9.375% senior notes from the senior implied rating, adjusting the rating to B3 from Caa2.

The outlook is stable.

Moody's said the upgrade follows Moody's upgrade of both Venezuela and PDVSA, the national oil company of Venezuela, both of which were downgraded last year pending a resolution to the political instability in the country, which, however, appears to have occurred with the recall referendum completed in August.

While Moody's felt that fundamentally Harvest's operations and liquidity were in line with higher ratings at the time, the company's dependency on sales to PDVSA for all of its operating cash flows and with all of its reserves and production located in Venezuela resulted in ratings more in line with Moody's ratings for both PDVSA and Venezuela during this period of uncertainty.

© 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.