S&P revises Energean outlook to negative

S&P said it revised its outlook for Energean plc to negative from stable and affirmed its B+ ratings on the company and its senior secured notes.

“The outlook revision primarily stems from the material escalation of geopolitical and security risks in Israel, and exposure of Energean's assets to such risks, given their role as important infrastructure in the country,” S&P said in a statement.

The agency added, “As of now, Energean's assets have not been directly affected by the conflict because they are located in the northern part of Israel, away from the affected areas in the south. That said, in recent days, there has also been an exchange of fire in the north of the country between the Israeli Defense Forces and Hezbollah as well as Syria, which exposes Energean's projects to higher security risks. We continue to assess the risk of a shutdown, damage, or any other limitations on operations and expansion works, as well as repercussions for sales and cash generation.”

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