S&P puts Geo Energy on positive watch

S&P said it placed Geo Energy Resources Ltd.’s CCC rating on CreditWatch with positive implications.

The placement follows the company reporting its plan to fully redeem its outstanding bond at 102%. The bond is trading at 90% of par value.

“We expect GERL's planned bond redemption to eliminate the prospects of near-term refinancing risk or bond repurchases below par,” S&P said in a press release.

The CreditWatch placement reflects the likelihood of an upgrade following the completion of the bond redemption. “We expect to resolve the CreditWatch placement by mid-October, where we would likely raise the issuer credit rating to B-,” the agency said.

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