S&P ups Kosmos Energy

S&P said it raised its issuer credit rating on Kosmos Energy Ltd. to B+ from B and removed all its ratings on the company from CreditWatch with positive implications, where S&P placed them on Aug. 7 following Kosmos' announcement that it entered into a definitive agreement to acquire Deep Gulf Energy.

The outlook is stable.

At the same time, S&P raised its issue-level rating on Kosmos' senior secured notes to BB- from B- and assigned a 2 recovery rating to this debt, reflecting an expectation of substantial (70%-90%; rounded estimate: 85%) recovery to creditors in the event of a payment default.

“The upgrade reflects our view that the Deep Gulf Energy acquisition strengthens Kosmos' business risk profile by enhancing its scale of reserves and production. It also lowers political risk due to geographical diversification in the U.S.,” S&P said in a news 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.