Fitch downgrades MIE

Fitch Ratings said it downgraded MIE Holdings Corp.'s long-term issuer default rating to CCC from B-.

The ratings also were removed from negative watch.

The ratings on the company’s senior unsecured $200 million notes due 2018 and $500m notes due 2019 also were downgraded to CCC from B-. The recovery ratings on the notes remain at RR4.

The downgrades reflect the challenges MIE faces in refinancing its outstanding notes due between February 2018 and April 2019, which represent the majority of its debt obligation, Fitch said.

These risks persist even though the company’s near-term liquidity pressure has declined, the agency explained.

It will be difficult for MIE to use the cash proceeds from completed and planned asset sales to purchase assets at a discount as the agency expects the oil price to see further moderate rises over the next few years, Fitch said.

This potentially challenges the company's ability to improve its operating scale and profile through acquisitions, the agency added.

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