Fitch cuts Seven Energy notes, under review

Fitch Ratings said it placed Seven Energy International Ltd.’s B- issuer default rating on Rating Watch Negative.

Simultaneously, the agency downgraded the senior secured rating of wholly owned subsidiary Seven Energy Finance Ltd.’s 10¼% $300 million secured notes due 2021 to CCC+/RR5 from B-/RR4 and placed them on negative watch to reflect the reassessment of recovery prospects for secured bondholders.

Fitch said the negative watch is driven by its assessment of Seven Energy's liquidity position, and reflects the risk that the company's plans to address this may not be successful. The agency expects to resolve the watch once it obtains clarity on Seven Energy's progress in raising new equity or debt capital, which it expects to happen by end-2015.

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