Fitch: BG Energy on watch

Fitch Ratings said it placed BG Energy Holdings Ltd.'s long-term issuer default rating of A and short-term issuer default rating of F1 on Rating Watch negative.

The negative watch reflects a substantial reduction in BG Energy's planned oil and gas production growth for 2012 and 2013, which undermines the company's track record of meeting production targets, Fitch said.

This track record has been key to the agency's decision to tolerate higher credit metrics in the next two to three years than are typically comfortable for an A rating for this type of company, Fitch said.

The agency said it expects to resolve the watch in early 2013 following the completion of BG Group's business planning process, which is currently ongoing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.