Fitch rates MIE notes B

Fitch Ratings said it assigned MIE Holdings Corp. a long-term foreign-currency issuer default rating of B with a stable outlook and an expected rating of B/RR4 to the company's proposed notes.

MIE's ratings reflect the upstream nature of the company's operations and consequent exposure to potential oil price volatility, the agency said.

The ratings are constrained by the company's small operating scale as reflected by low proven reserves and production levels compared with other oil and gas companies, the agency added.

MIE is planning to use $170 million from the notes' proceeds for the Emir Oil acquisition. This transaction is expected to close by June.

Fitch believes that the execution risk associated with the Emir Oil acquisition is partially mitigated by MIE's track record of successfully developing and operating similar oilfields, the agency said.

The ratings reflect the high concentration of MIE's production assets, which makes it vulnerable to any individual operational disruption, the agency added.

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