Fitch upgrades Geo Energy

Fitch Ratings said it raised Geo Energy Resources Ltd.'s long-term issuer default rating to CCC+ from CCC.

The agency also upgraded the rating on the outstanding senior unsecured guaranteed notes of Geo's subsidiary, Geo Coal International Pte. Ltd., to CCC+ from CCC with an RR4 recovery rating. The notes are guaranteed by Geo Energy.

“The upgrade follows Geo's materially improved liquidity profile on record high coal prices. Geo intends to fully repay the remaining $59 million of its senior notes by Oct. 10, 2021, using its reported cash balance of $120 million as of September 2021, leaving it close to debt free. Fitch expects Geo's EBITDA to rise to over $200 million in 2021 from $40 million in 2019 and the company to continue accumulating cash for a balance of around $100 million by end-2021 due to strong coal prices,” the agency said in a press release.

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