S&P rates ENAP notes BB+

S&P said it assigned a BB+ issue-level rating to Empresa Nacional del Petroleo's planned 10-year senior unsecured notes of up to $500 million.

The company will use the proceeds with cash on hand that totaled $450 million on Dec. 31, 2022, to repay the $600 million international bond due in October 2024.

“We view the issuance as neutral for the existing ratings, mainly because our base-case scenario incorporates ongoing access to debt and capital markets as a means for ENAP to manage its debt maturities in the short term. In addition, this issuance won't result in higher debt. If the issuance occurs, it will alleviate the company's financial needs in 2024 by securing funds to repay the international bond due in October 2024. Also, it would lengthen the company's debt maturity profile,” S&P said in a press release.

The outlook is positive.

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