S&P ups Zhaikmunai

Standard & Poor's said it raised to B from B- the long-term corporate credit rating on Zhaikmunai LP and removed the rating from CreditWatch positive.

The outlook is stable.

The agency also said it assigned a final B long-term issue rating to financing vehicle Zhaikmunai Finance BV's long-term senior fixed-income notes, guaranteed by Zhaikmunai. The recovery rating is 3, reflecting an expectation of 50% to 70% recovery for noteholders in a default.

The upgrade reflects a view that Zhaikmunai's liquidity profile has improved following the successful $450 million five-year bond issue and subsequent refinancing of all its existing bank debt, S&P said.

The agency said it classifies its business risk profile as "vulnerable," given the company's current low production of 7,260 barrels of oil per day, some uncertainty on its major production step-up plan, reserve concentration in a single field in northern Kazakhstan and exposure to country risk.

© 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.