Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers G > Headlines for Geo Coal International Pte. Ltd. > News item |
Moody's downgrades Geo Energy
Moody's Investors Service said it downgraded the corporate family rating of Geo Energy Resources Ltd. to Caa3 from Caa1. In addition, Moody's downgraded to Caa3 from Caa1 the senior unsecured guaranteed notes issued by Geo Coal International Pte. Ltd., a wholly owned subsidiary of Geo Energy. The outlook on these ratings remains negative.
"The downgrade reflects a material deterioration in Geo Energy's liquidity following the company's continued discounted buybacks of its U.S. dollar notes," said Maisam Hasnain, a Moody's assistant vice president and analyst, in a press release.
"In addition, we believe that continued discounted buybacks represent an aggressive financial policy, particularly when the company needs to preserve cash to make an acquisition to prevent a put option on its bond by April 2021," added Hasnain, also Moody's lead analyst for Geo Energy.
On Tuesday, Geo Energy announced it spent $42.8 million to buy back $75.8 million in principal on its dollar-denominated notes.
© 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.