Moody's boosts Harvest Operations

Moody's Investors Service said it raised Harvest Operations Corp.'s corporate family rating to Ba2 from B3, its senior unsecured rating to Ba1 from Caa1 and its speculative grade liquidity rating to SGL-2, reflecting good liquidity.

The substantial uplift reflects Harvest's stand-alone credit profile comparable to a B1 and two notches of uplift from the support of Korea National Oil Co., which has A2 ratings and a stable outlook.

The outlook is stable.

The improvement in Harvest's stand-alone credit profile reflects its reduced leverage and improved liquidity since its acquisition by Korea National Oil in December, Moody's said.

Harvest is now financially positioned to carry out a meaningful and consistent drilling program on its oil properties that should result in modestly higher production and reserve adds, the agency said, and improved finding and development costs.

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