Fitch lifts Phoenix Natural Gas view to stable

Fitch Ratings said it revised the outlook on Phoenix Natural Gas Ltd.'s long-term issuer default rating to stable from negative and affirmed the issuer default rating at BBB.

Fitch also said it affirmed the company's short-term issuer default rating at F3 and senior secured rating at BBB+.

The agency also said it affirmed the senior secured instruments issued by Phoenix Natural Gas Finance plc and guaranteed by Phoenix Natural Gas at BBB+.

The outlook revision reflects the company's progress towards the successful refinancing of its entire capital structure, Fitch said.

The agency said it expects Phoenix Natural's metrics to remain commensurate with the current ratings during the new price control starting in 2017.

Financial profile improvements come mainly from the favorable cost of debt adjustment mechanism introduced in the final determinations and the successful refinancing, which has led to a lower cost of debt and improved post-maintenance interest cover comfortably above the negative guideline of 1.5x, Fitch said.

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