Fitch cuts Seven Energy notes to CCC

Fitch Ratings said it affirmed Nigeria-based Seven Energy International Ltd.’s issuer default rating at B- and removed it from Rating Watch Negative.

The outlook is negative.

The agency also downgraded the senior secured rating of wholly owned subsidiary Seven Energy Finance Ltd.’s 10¼% $300 million secured notes due 2021 to CCC/RR6 from CCC+/RR5.

The actions follow Seven Energy successfully raising $100 million in new equity (completed Feb. 17) and the improvement in its liquidity position for the remainder of 2016.

The negative outlook reflects Fitch’s view that the company remains vulnerable to execution and other risks associated with its natural gas and liquids business in Nigeria, as well as a Fitch-projected liquidity shortfall as early as in 1H17, absent restructuring of debt maturities. Seven Energy is currently looking for alternative refinancing options for 2017.

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