S&P trims Kosmos Energy

S&P said it lowered its ratings on Kosmos Energy Ltd. and its unsecured debt to B from B+. The 3 recovery rating on the debt is unchanged.

On Friday, the agency cut Ghana’s transfer & convertibility rating on Ghana to CCC+ from B.

“While Kosmos' exposure to Ghana, based on its production and EBITDA, is material at about 55%, the company exports all of its Ghanaian oil production and receives the proceeds from its oil sales in U.S. dollars, which it deposits directly into offshore bank accounts. Nevertheless, there remains a risk that in a default scenario Ghana could enact stricter capital or foreign-currency controls on exporters. Therefore, we cap our ICR on Kosmos at B, which is two notches above our T&C assessment on Ghana,” S&P said in a press release.

The outlook is negative.

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