Fitch: MIE on negative watch

Fitch Ratings said it placed MIE Holdings Corp.’s B long-term issuer default rating on Rating Watch negative, along with its senior unsecured rating and the ratings on its $200 million notes due 2018 and $500 million notes due 2019.

The negative watch follows news that the company will acquire a 43.9% interest in Long Run Exploration Ltd., a Canada-based upstream oil and gas company, for C$201.5 million.

The company is exploring various options to fund the transaction, including the introduction of strategic investors, equity issuance, existing asset disposals and debt issuance, Fitch said.

Weak oil prices also have significantly reduced MIE’s rating headroom, the agency added.

Based on available information, it appears that Long Run is an asset with good medium-term potential, Fitch said.

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