Fitch upgrades Puma Energy

Fitch Ratings said it upgraded Puma Energy Holdings Pte. Ltd.'s long-term issuer default rating to BB from BB-. The agency also raised Puma International Financing SA's senior unsecured instrument ratings to BB from BB-. The recovery rating remains at RR4.

“The upgrades capture Puma Energy's improved financial flexibility through a $1 billion debt reduction over the last two years, a simplified debt structure and sustained lower drawings under short-term Holdco bank facilities.

“We assume completion of bank facility refinancing with an extended medium-term element. EBITDAR net leverage of below 3x (adjusted for leases and readily marketable inventory) and coverage metrics, albeit still weak, meet the positive rating sensitivities for an upgrade to BB, despite the moderate contraction of the company's business scale,” Fitch said in a press release.

The outlook is stable.

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