S&P lowers GeoPark Latin America

Standard & Poor's said it lowered the ratings GeoPark Latin America Ltd. Agencia en Chile to B- from B.

The outlook is stable.

The downgrade reflects an expectation that within the next 12 months, GeoPark's credit metrics will be weaker than previously anticipated because of lower hydrocarbon price assumptions, S&P said.

Although GeoPark adapted quickly to the new pricing scenario, preserving its growth strategy while implementing cost reduction initiatives, the agency said it believes those measures would not be sufficient to offset pressure from weaker commodity prices.

GeoPark Ltd. controls GeoPark Latin America and has operations in Chile, Colombia, Brazil, Peru and Argentina, S&P said.

The ratings reflect the parent company’s consolidated figures as both entities constitute a single economic entity with a single default risk, the agency said.

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