Fitch gives Afren notes B+(EXP)

Fitch Ratings said it assigned Afren plc's dollar-denominated secured notes an expected senior secured rating of B+(EXP) with a recovery rating of RR4.

Afren's B+ long-term issuer default rating and B+ senior unsecured rating were affirmed.

The outlook on the long-term issuer default rating is stable.

The rating is in line with Afren's issuer default rating to reflect average recovery prospects in the event of default.

The agency simultaneously revised the debt-class rating of Afren's 2016 and 2019 secured notes to a senior secured rating of B+/RR4 from B+/RR4. Given expectations of average recoveries across both debt classes, Fitch affirmed the senior unsecured rating at B+.

Afren's ratings reflect Fitch's expectations of positive cash generation over 2013-2016 driven by production expansion and sound profitability, which are balanced by Afren's strong exposure to political risk in Nigeria (BB-/stable) and Iraq, the agency said.

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