Moody's changes Energean Israel view to negative

Moody's Investors Service said it affirmed the senior secured Ba3 ratings of Energean Israel Finance Ltd. but changed the outlook to negative from stable.

Energean Israel Finance is a special purpose vehicle owned by Energean Israel Ltd. and issues notes secured by first-priority fixed and floating pledges on certain assets of Energean Israel.

The outlook change follows an announcement on May 24, by Energean plc, the ultimate parent of Energean Israel, that it now expects the Karish field to achieve first gas from mid-2022, around six months later than forecast when the notes were issued, the agency said.

“The negative outlook reflects the risk that the company may have insufficient liquidity in case of further delays to commercial production, and that such delays could give large offtakers the right to terminate or renegotiate their contracts,” Moody’s said in a press release.

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