Fitch: Afren view to negative

Fitch Ratings said it revised its outlook on Afren plc's long-term issuer default rating to negative from stable.

The agency also said it affirmed its long-term foreign-currency issuer default rating at B and foreign-currency senior unsecured rating at B with a recovery rating of RR4.

The negative outlook reflects heightened execution risk already embedded in Afren's operations in Nigeria and other African countries, Fitch said.

Although this acquisition will enable Afren to expand its international footprint, Fitch said it does not view such geographic diversification as reducing the company's exposure to political risk inherent in its African operations.

The operating environment in Iraq is constrained by a lack of a legal framework for the development of the hydrocarbons sector in the country, the agency said.

© 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.