Fitch rates Gran Tierra Energy notes B

Fitch Ratings said it assigned an expected B rating with recovery rating of RR4 to Gran Tierra Energy Inc.'s proposed $300 million seven- or eight-year senior unsecured notes.

The proceeds will be used to repay the outstanding amounts borrowed under the revolving credit facility, capital expenditure and for general corporate purposes, Fitch said.

Fitch currently rates Gran Tierra Inc.'s wholly owned subsidiary, Gran Tierra Energy International Holdings Ltd.'s long-term foreign- and local-currency issuer default rating at B and its senior unsecured notes at B with recovery rating of RR4.

The outlook is positive.

Gran Tierra's ratings consider its conservative capital structure and low-cost operating profile, which is constrained by smaller scale and limited geographic diversification, Fitch said.

The positive outlook reflects consistent annual growth, the agency added.

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