S&P lowers Tullow Oil

S&P said it lowered its ratings on Tullow Oil and its senior secured notes due 2026 to CC from CCC+ and its senior unsecured notes due 2025 to C from CCC.

On Wednesday, the company announced offers to repurchase its senior unsecured notes due 2025 for up to $300 million cash consideration and its senior secured notes due 2026 for up to $100 million cash consideration.

“We will likely view repurchases resulting from tender offers as distressed and not opportunistic. The downgrade to CC follows Tullow's announcement that it has launched tender offers to repurchase its senior unsecured notes due 2025 for up to $300 million cash consideration and its senior secured notes due 2026 for up to $100 million cash consideration. If the final prices for the notes are below par, as we expect, we will likely see the transactions as tantamount to a default,” S&P said in a press release.

The outlook is negative.

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