Moody’s snips Geo Energy Resources

Moody’s Investors Service said it downgraded the ratings for Geo Energy Resources Ltd. and senior unsecured notes it guarantees to B3 from B2.

“The downgrade reflects our expectation that Geo Energy’s credit metrics will remain very weak over the next 12-18 months, despite incremental earnings from its planned mine acquisitions in South Sumatra,” said Maisam Hasnain, a Moody’s assistant vice president and analyst, in a press release.

Moody’s said adjusted leverage for the company has continued rising, citing lower coal prices, limited production growth and elevated operating costs.

The outlook is negative.

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