Moody's rates Tullow CFR Ba2, notes B1

Moody's Investors Service said it assigned a corporate family rating of Ba2 and a probability of default rating of Ba2-PD to Tullow Oil plc.

Concurrently, the agency assigned a provisional B1 rating with a loss given default assessment of LGD6 (91%) to the senior notes maturing in 2020 to be issued by the company and guaranteed on a senior subordinated basis by certain of its subsidiaries.

The outlook is stable.

The proceeds from the notes will be used to partially repay (without cancelling) Tullow's reserves-based lending facilities.

Moody's said the Ba2 corporate family rating acknowledges the positive effect that the growth strategy pursued by Tullow in the past few years has had on its resource portfolio and financial performance in the context of conservative financial management practices, while reflecting the higher risk characteristics inherent to its focus on exploration activity, limited producing asset base and country risk exposure.

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