S&P lifts Gran Tierra Energy

S&P said it upgraded Gran Tierra Energy Inc. and the ratings on its senior unsecured notes to B- from CCC+. The agency also removed the ratings from CreditWatch with negative implications, where S&P placed them on May 15.

“GTE announced the completion of renegotiated terms under its committed revolving credit facility after the company petitioned for a waiver amid the current downturn. GTE received a waiver on its covenants until Oct. 1, 2021. We believe the waiver will prevent the company from facing any payment acceleration on its revolving credit facility and senior unsecured notes under its cross-default restrictions,” S&P said in a press release.

However, the agency said it does expect Gran Tierra “to breach its debt-to-EBITDAX covenant on its revolving credit facility by mid-2020, given the sharply low oil prices and potential decline in volume demand.”

The outlook is stable.

© 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.