Moody's rates Melrose notes B3

Moody's Investors Service has today assigned a B2 corporate family rating to Melrose Resources plc, along with a provisional B3 rating to the proposed €250 million notes to be issued.

The outlook is stable.

The ratings reflects the company's small scale in terms of hydrocarbon reserves and production, the project and execution risk entailed by its large capital expenditure program in order to grow production and high leverage driven by past acquisitions and capital expenditure, the agency said.

The ratings also consider its stable cash flow base, low cost structure and good operational track record and the company's full ownership and operatorship of its main producing assets, Moody's added.

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