S&P ends watch on NagaCorp

S&P said it affirmed B its ratings on NagaCorp Ltd. and its senior unsecured notes and removed the ratings from CreditWatch, where they were placed with negative implications on June 14. The outlook is now negative.

Last month the company entered a shareholder loan pact for up to $80 million to help with its $472 million of senior unsecured notes due in July 2024. With free operating cash flows of $145 million-$175 million for the last three months of 2023 and the first six months of 2024, with careful spending, S&P said it believes Naga could amass enough cash to address next July’s maturity.

The negative outlook reflects the thin cash buffer NagaCorp will have after repaying the notes and the lack of visibility over the financing plan for its operations and subsequent discretionary spending.

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