Moody’s ups Consolidated Energy

Moody’s Investors Service said it raised Consolidated Energy Finance, SA’s senior secured bank credit facilities to Ba3 from B1 and the rating of the guaranteed senior unsecured instruments to B2 from B3. The agency also upgraded Consolidated Energy Ltd.’s corporate family rating to B1 from B2 and its probability of default rating to B1-PD from B2-PD.

The agency also revised the outlook for both companies to stable from positive.

“The upgrade of CEL's rating reflects the company's gross debt reduction since 2020 using free cash flow (FCF) that has been generated, and the expectation that management will continue to focus on gross debt reduction enabled by further free cash flow generation,” the agency said in a press release.

Moody’s noted as of December 2022, CEL trimmed its Moody’s-adjusted gross debt to $2.95 billion, excluding the cash collateralized Big Lake Fuels LLC bond issuance, from $3.33 billion as of December 2020. The agency estimates CEL will cut its adjusted gross debt to $2.8 billion by December 2023 and to around $2.6 billion in 2024.

© 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.