Moody's upgrades Kosmos

Moody's Investors Service said it upgraded Kosmos Energy Ltd.'s corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD and senior unsecured notes to B3 from Caa1. The speculative grade liquidity rating, however, was downgraded to SGL-3 from SGL-2 and the outlook was revised to stable from negative.

The upgrade reflects a similar action on June 9 to the credit risk profile of the country of Ghana, where most of Kosmos Energy's oil production is, the agency said.

“The SGL-3 rating reflects that the company will have adequate liquidity through 2024. While Moody's expects a modest amount of negative free cash flow in 2023, the company will produce free cash flow in 2024 driven by higher production and materially lower growth spending,” the agency said in a press release.

The outlook is consistent with Ghana’s outlook, Moody’s said.

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