Moody's rates Pan American Energy notes B1

Moody's Investors Service said it affirmed Pan American Energy LLC's Ba2 global local currency issuer rating and B1 foreign currency issuer rating and assigned a B1 foreign currency rating to the medium-term notes to be issued by Pan American Energy LLC, Argentine Branch under the company's $1 billion MTN program.

The outlook is stable.

Moody's said Pan American Energy's rating is supported by its substantial oil and gas reserves and strong market share in Argentina, its position as a net exporter of oil and gas, its fairly long reserve life on proven developed reserves and favorable oil production growth outlook, its efficient cost structure, the benefits derived from its relationship with its majority owner, BP plc (rated Aa1) and its appropriately conservative financial leverage.

The B1 foreign currency rating also reflects the company's strong track record in servicing its foreign currency debt obligations during the Argentine financial crisis, its ability as an oil and gas company operating in Argentina to keep up to 70% of its export proceeds offshore and the fact that it has a strong majority owner that operates outside of Argentina.

© 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.