S&P rates Heritage Petroleum, notes BB

S&P said it preliminarily rated Heritage Petroleum Co. Ltd. and its planned sale of up to $700 million of senior secured notes BB. The issuer is owned by Trinidad Petroleum Holdings Ltd.

“We view Heritage as a core subsidiary of TPHL because the former carries the group's strategic objectives, and is likely to receive extraordinary support, if required, under any foreseeable circumstance,” S&P said in a press release.

Trinidad Petroleum will use the proceeds to refinance its debt.

The outlook is negative and mirrors the outlook on Trinidad and Tobago. It also reflects expectations that if Heritage refinances its parent company's debt, the agency would most likely raise the rating on TPHL to BB and assign a negative outlook. TPHL is rated B+ with a developing outlook.

“If we were to lower our sovereign long-term local currency rating on T&T, it will lead to a downgrade on TPHL as well as Heritage,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.