Fitch revises Puma Energy view to negative

Fitch Ratings said it revised the outlook on Puma Energy Holdings Pte. Ltd.'s BB issuer default rating to negative from stable.

The issuer default rating and the senior unsecured rating on Puma International Financing SA's notes were affirmed at BB.

The agency said the revision reflects the deterioration in Puma Energy's credit metrics and the limited headroom under the ratings for further headwinds with readily marketable inventory-adjusted net leverage now forecast at 4.5x at end-2018 against Fitch’s negative sensitivity of 4x.

“The weaker credit profile is primarily attributable to the group's underperformance in Angola where margins have come under severe pressure as a result of a concurrent devaluation of the currency and a fuel price freeze in 1H18,” Fitch said in a news release.

“To a lesser extent, the weaker performance also reflects intensifying competition and changes in the cost structure in Australia in the context of increasing oil prices.”

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