S&P might lift Kosmos Energy

S&P said it placed its ratings on Kosmos Energy Ltd., including its B issuer credit rating, on CreditWatch with positive implications.

The agency also placed the B- issue-level rating on the company's senior secured debt on CreditWatch positive.

Kosmos Energy entered into definitive agreements to acquire Deep Gulf Energy for a total consideration of $1.23 billion. Kosmos will finance the acquisition with a combination of equity and cash.

S&P said the CreditWatch with positive implications reflects that it could raise Kosmos ratings by one notch if the transaction closes as expected.

“We believe this acquisition will strengthen Kosmos' business risk profile, enhancing its scale, reserves, production and geographical diversification in the U.S., which we view as a very low risk country,” the agency said in a news release.

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