Fitch downgrades Kosmos

Fitch Ratings said it downgraded Kosmos Energy Ltd.’s long-term issuer default rating to B from B+. The agency also downgraded Kosmos’ 7 1/8% $650 million of senior unsecured notes due 2026 to B/RR4 from BB/RR2.

“The downgrade of Kosmos’ IDR reflects Fitch’s expectation of elevated funds from operations (FFO) net leverage above 4x in 2020-2021, which implies a breach under the company’s financial covenants in 4Q20 limiting access to committed liquidity sources throughout 2020,” Fitch said in a press release.

The outlook is negative.

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