Fitch lowers BG Energy view to negative

Fitch Ratings said it revised BG Energy Holdings’ outlook to negative from stable and affirmed its long-term issuer default rating at A-.

The agency also affirmed the company’s short-term issuer default rating at F2, along with BG Energy Finance Inc.’s short-term debt rating at F2.

Fitch also affirmed BG Energy Capital plc’s senior unsecured rating at A-, short-term debt rating at F2 and subordinated hybrid debt at BBB.

The negative outlook reflects completion risks associated with BG’s new upstream projects and challenges the company is facing in Egypt, the agency said.

The group’s credit metrics are viewed as stretched for the current ratings because of BG’s ambitious investments coinciding with declining production, despite a series of asset disposals intended to strengthen the group’s balance sheet, Fitch added.

But, the agency said it expects BG’s business profile to improve with the start-up of its major projects in Australia and Brazil.

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