Fitch puts Hunt Oil Peru on negative watch

Fitch Ratings said it placed the ratings for Hunt Oil Co. of Peru LLC on rating watch negative, including the BBB long-term foreign and local currency issuer default ratings and the BBB rating on the $600 million senior notes due 2028.

The agency said the rating watch reflects the company’s heightened regulatory and political risk from the Peruvian government's recent request to renegotiate the Camisea Consortium's license agreement.

The company has a 25.2% stake in the consortium, which manages Peru's largest natural gas producing fields.

“Fitch estimates that 30% to 35% of HOCP's revenues are exposed to a potential amendment of the agreement to the company's ability to export,” the agency said in a news release.

Fitch said it expects to resolve the rating watch in six months or longer once there is greater clarity on the outcome of a potential new license agreement and its impact on the company’s credit profile.

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