Fitch lowers Geo Energy view to negative

Fitch Ratings said it revised the outlook on Geo Energy Resources Ltd. to negative from stable and affirmed the long-term issuer default rating at B.

Fitch also said it affirmed Geo Coal International Pte. Ltd.'s $300 million 8% senior unsecured guaranteed notes due 2022 at B with recovery rating of RR4.

The outlook revision reflects Geo's gradually deteriorating operating profile with declining reserves and reserve life in the absence of acquisitions, Fitch said.

Geo relies on inorganic growth to improve reserves given the nature of its existing mines, the agency noted.

Fitch said it believes Geo's credit metrics will remain adequate for its rating with a slight improvement over the next two years based on a forecast for modestly higher production volume.

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