Moody’s cuts Consolidated Energy

Moody’s Investors Service said it downgraded Consolidated Energy Finance, SA’s corporate family rating to B2 from B1. Concurrently Moody's downgraded the ratings of its backed senior unsecured notes and backed senior secured bank credit facility to B3 and B1 from B2 and Ba3, respectively.

From now on, Moody's said it will maintain a corporate family rating and a probability of default rating at the level of the company's parent and the restricted group’s top company, Consolidated Energy Ltd. Consequently, Moody's assigned a B2 CFR and a B2-PD to the parent. The outlook on Consolidated Energy Finance changed to negative from ratings under review. The outlook on Consolidated Energy Ltd. is negative.

This action concludes the review for downgrade started on Nov. 10. With the CFR and PDR now assigned at the level of Consolidated Energy Limited, Moody's said it would withdraw Consolidated Energy Finance’s CFR.

“The downgrade of Consolidated Energy Finance, SA's ratings reflects Moody's expectations that credit metrics of Consolidated Energy Limited (CEL) in 2021 will not be in line with the requirements to maintain a B1 rating, even though 2021 should see a considerable improvement in Moody's-adjusted gross leverage to below 7x from 21x as of end Q3 2020 driven by significantly improved operating performance,” the agency said in a press release.

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