Fitch revises Vermilion view to stable

Fitch Ratings said it changed the outlook for Vermilion Energy Inc. to stable from negative and affirmed its issuer rating at BB- and the company's senior unsecured ratings at BB-/RR4.

“Strong EBITDA results during 2021 and the rolling off of more heavily pandemic impacted results during 2020 have materially improved headroom under both Vermilion's total and senior debt to EBITDA covenants by over two EBITDA turns for each. At year-end 2021 Vermilion's 4x total debt to EBITDA covenant had improved to 1.61x from 3.48x at YE 2020, relieving all covenant tightness,” Fitch said in a press release.

The outlook reflects Vermilion's use of free cash flow to reduce debt and its increased covenant headroom.

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