Fitch changes Ovintiv view to positive

Fitch Ratings said it affirmed the long-term issuer default ratings of Ovintiv Inc., Ovintiv Canada ULC and Ovintiv Exploration Inc. at BB+ but revised the outlook to positive from negative. The senior unsecured recovery ratings remain RR4

“The main drivers for the revision to a positive rating outlook center on the company's $1.1 billion in announced asset sales and enhanced FCF outlook, which should allow for accelerated gross balance sheet reductions versus earlier targets, and will also address refinancing concerns. For a future upgrade, Fitch would also expect to see a trend of continued structural improvements in netbacks and FCF across the cycle through unit cost reductions while maintaining low leverage and an adequate drilling inventory,” Fitch said in a press release.

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