Fitch upgrades CGC

Fitch Ratings said it upgraded Compania General de Combustibles SA’s long-term foreign-currency and local-currency issuer default ratings to B- from CCC and the senior unsecured note due in November to B-/RR4 from CCC/RR4.

“The upgrade of CGC's ratings reflects the increased production, reserve base and improved leverage and liquidity profile of the company following its acquisition of Sinopec Argentina. On a pro forma basis, CGC increased its production by 67% to 61,100boed. 1P reserves increased by 50% to 90Mmboe with a 1P reserve life of 4 years. Liquidity position increased by $93.7 million with a pro forma cash position of $244.9 million,” Fitch said in a press release.

The outlook is stable.

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