S&P changes Kosmos outlook to stable

S&P said it changed its outlook for Kosmos Energy Ltd. to stable from negative and affirmed the B ratings on the company and its unsecured debt. The recovery rating on the debt remains 3, indicating meaningful (50%-70%; rounded estimate: 50%) recovery if Kosmos defaults.

About 60% of Kosmos’ oil and gas exploration and production and EBITDA comes from operations in Ghana.

“The outlook revision on Kosmos reflects our view that the government of Ghana will not implement extensively tighter capital or foreign-exchange controls, given its commitments under its IMF Extended Credit Facility Program. Ghana's commitments include measures to regain access to international markets, to attract foreign direct investment, and to improve the business environment.

“Ghana remains a midsize and open economy, with a significant stock of inbound investment capital, and considerable reliance on export earnings from gold, cocoa, and hydrocarbons. In light of upcoming 2024 parliamentary elections, we do not anticipate a change in government to have an adverse impact on E&P operators in Ghana,” S&P said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.