Fitch cuts Geo Energy

Fitch Ratings said it revised Geo Energy Resources Ltd.’s issuer rating to CC from C. Fitch also revised the rating on the senior unsecured guaranteed notes of Geo’s subsidiary, Geo Coal International Pte. Ltd., to CC, from C, with a recovery rating of RR4.

“The revision follows Geo’s failure to achieve the required minimum of 75% noteholder acceptance of its tender offer and consent solicitation for the removal of the mandatory repurchase clause; Geo reported that only 13.8% of notes, or $21.3 million, were validly tendered,” Fitch said in a press release.

“The CC rating reflects our view that a default appears probable within the next 12 months,” the agency said.

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