Fitch: Kosmos Energy notes B

Fitch Ratings said it assigned an expected B rating with recovery rating of RR4 to Kosmos Energy Ltd.’s upcoming senior secured notes.

The notes are rated in line with the company’s long-term issuer default rating of B as they will represent direct, senior and unconditional obligations of the company.

The notes will be issued at the holding company level and will mirror the existing $300 million notes due 2021.

The proceeds will be used to repay a part of the company's reserve based facility and to enhance its liquidity position, the agency said.

The company is a small, but growing oil and gas exploration and production company focused on the offshore Atlantic margin with 2014 net production of 23 thousand barrels of oil per day from the offshore Jubilee field in Ghana, Fitch said.

Kosmos Energy’s EBITDA is expected to decline in 2015, but to be mitigated by its strong hedging position, the agency said.

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