Moody's upgrades Geo Energy

Moody's Investors Service said it upgraded Geo Energy Resources Ltd.’s corporate family rating to B3 from Caa1. Additionally, the agency raised the senior unsecured guaranteed notes issued by Geo Coal International Pte. Ltd., a wholly owned subsidiary of Geo Energy, to B3 from Caa1

"The ratings upgrade to B3 reflects the elimination of refinancing risk following the redemption of its remaining outstanding notes next month with cash on hand," said Maisam Hasnain, a Moody's vice president and senior analyst, in a press release.

"Although the company will be effectively debt free, Geo Energy's credit profile remains constrained by its small scale, declining coal reserves and uncertainty over its diversification strategy," Hasnain said.

The outlook remains stable.

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