Fitch cuts Tristan Oil to C

Fitch Ratings said it downgraded Tristan Oil Ltd.'s long-term foreign-currency issuer default rating to C from CC and affirmed its senior unsecured rating at C with a recovery rating of RR6. The rating watch negative on the long-term foreign-currency issuer default rating is maintained.

The downgrade reflects a potential call on a subordinated guarantee provided by two operating companies - Kazpolmunay and Tolkynneftegaz - for a $60 million short-term loan raised by a third party and an expectation of their inability to satisfy their obligations under this guarantee, Fitch said.

The negative watch reflects the heightened liquidity and refinancing risk facing the company, the agency said.

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