Fitch cuts Corral Petroleum

Fitch Ratings said it downgraded Corral Petroleum Holdings AB's long-term issuer default rating to B- from B+ and placed it on rating watch negative.

“The downgrade reflects the deterioration in liquidity following the sharp drop in oil and oil product prices. In 1Q20, the downward revaluation of CPH's borrowing base facility (BBF), one of two key funding arrangements, resulted in a liquidity squeeze. CPH canceled $85 million of dividend payment to support liquidity,” said Fitch in a press release.

“We understand that the funding banks remain supportive of CPH, and operations remain largely intact and refining margins solid,” Fitch said.

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