S&P rates Gran Tierra, notes B+

S&P said it assigned its B+ long-term corporate credit rating to Gran Tierra Energy Inc.

The outlook is stable.

At the same time, the agency assigned a B+ issue-level rating on the proposed $300 million senior unsecured notes due 2025 to be issued by Gran Tierra Energy International Holdings Ltd.

S&P said the ratings on Gran Tierra reflect its small reserve base and production measures, aggressive capital spending plan and lack of geographic diversification because the majority of the company's operations are in Colombia.

The agency said its assessment of the company's high operating netbacks, its expected low leverage and its growth prospects with regard to production and reserves partially offset its weaknesses.

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