S&P elevates Tullow Oil, rates notes B

S&P said it raised its long-term issuer credit rating Tullow Oil to B+ from B. The outlook is stable.

S&P also raised its rating on Tullow's senior secured debt to B+ from B, and the rating on its senior unsecured debt to B from B-.

In addition, S&P said it assigned a B rating to the company's proposed $650 million senior unsecured notes.

“The upgrade follows Tullow's balance-sheet deleveraging process, which started in 2017 and will likely accelerate this year. In our view, favorable year-to-date oil prices and our current oil price assumption for the rest of 2018 ($60 per barrel [/bbl] versus our previous working assumption of $55/bbl), proceeds from agreed divestments, and cost cutting initiatives underpin the current positive momentum,” S&P said in a news release.

“At the same time, the company continues to take a proactive approach to mitigating downside risk with hedges and adequate liquidity.”

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