Fitch upgrades Pan American

Fitch Ratings said it upgraded Pan American Energy LLC's foreign-currency issuer default rating to BB from BB-, local-currency issuer default rating to BB+ from BB and its senior unsecured notes to BB from BB-.

The agency also upgraded the national long-term rating and senior unsecured notes of Pan American Energy LLC, Argentine Branch to AAA(arg) from AA+(arg).

The outlook is stable.

The agency said Pan American's ratings are supported by the strong fundamentals of the company operations combined with its robust financial profile. Operational strengths lie on the company leading position in the Argentine upstream business, long proved reserve life, high reserve replacement ratio, competitive production cost and strong production growth prospects.

Offsetting factors to the ratings include geographic concentration, upstream exposure and Argentine operational risks, Fitch said.

The total debt-to-EBITDA ratio is 0.7x.

© 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.