S&P hikes Trinidad Petroleum

S&P said it raised Trinidad Petroleum Holdings Ltd.’s issuer rating to BB from B-, removed its ratings from CreditWatch with developing implications and assigned a negative outlook.

Subsidiary Heritage Petroleum Co. Ltd., based in Trinidad & Tobago, refinanced most of Trinidad Petroleum's debt through its $500 million of senior secured notes due 2029 and new $475 million term loan. “This debt structure now has a more comfortable amortization schedule, and so we expect that Heritage will be able to allocate part of its cash generation to growth and expansion capital expenditures (capex),” S&P said in a press release.

The agency also withdrew its ratings on Trinidad Petroleum's 9¾% senior secured notes due 2026 and 6% senior unsecured senior notes due 2022 after full repayment.

“The negative outlook on both TPHL and Heritage mirrors that on T&T (BBB-/negative/A-3). If we were to lower our long-term local currency sovereign rating on T&T, it would lead to a downgrade on both companies. Moreover, we could downgrade Heritage if TPHL's liquidity position weakens beyond our expectations,” S&P said.

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