Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers G > Headlines for Greenfire Resources Ltd. > News item |
Moody’s assigns B3 to Greenfire
Moody’s Investors Service said it assigned a B3 rating to Greenfire Resources Ltd.’s planned $300 million of senior secured notes, a B3 corporate family rating and a B3-PD probability of default rating. The speculative grade liquidity rating is SGL-2. The outlook is stable.
In explaining the B3 CFR, Moody’s noted Greenfire’s low operating and capital costs, retained cash flow to debt settling above 30% under our medium-term oil prices and free cash flow helping debt reduction and good liquidity.
However, the agency pointed out Greenfire has a small production and reserve base, its exposure to bitumen, which is benchmarked to the historically volatile Western Canadian heavy oil price, and that most of its assets are concentrated in two oil sands projects.
Greenfire will use the proceeds to refinance indebtedness, fund transaction costs and for general corporate purposes.
“The stable outlook reflects Moody's expectation that 2024 credit metrics will improve through debt reduction and production growth contributing to higher cash flow,’ 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.