Moody's downgrades Puma Energy

Moody's Investors Service said it downgraded Puma Energy Holdings Pte. Ltd.'s corporate family rating to B1 from Ba3. Concurrently, Moody's affirmed Puma Energy's Ba3-PD probability of default rating as well as the Ba3 ratings assigned to Puma International Financing SA's senior unsecured notes guaranteed by Puma Energy. The outlook for both entities remains negative.

The downgrade of the corporate family rating reflects the increase in consolidated financial leverage resulting from Puma Energy's repurchase of 11.04% of its ordinary shares from Trafigura Pte Ltd. following the latter's buy-back of the shares from Cochan Holdings.

Puma Energy will finance the $390 million share repurchase with a shareholder loan from Trafigura. This shareholder loan does not qualify for equity treatment under Moody's hybrid equity credit, cross-sector rating methodology.

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