Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers G > Headlines for Geo Energy Resources Ltd. > News item |
Fitch trims Geo Energy
Fitch Ratings said it lowered Geo Energy Resources Ltd.’s long-term issuer default rating to B- from B. The agency also downgraded the rating on Geo Coal International Pte. Ltd.’s $300 million senior unsecured guaranteed notes to B-from B with a recovery rating of RR4.
“The downgrade reflects Fitch’s expectation of weakened operating cash flow and thereby increased refinancing risk for Geo’s U.S. dollar notes following the downward revision of Fitch’s coal-price assumptions,” the agency said in a press release.
The company’s proposed acquisition of a 51% stake in two coal mines may help delay redemption pressure on the dollar-denominated notes, but aren’t likely to improve Geo’s credit profile, Fitch said.
The outlook is negative.
© 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.