18th Apr 2016 16:30
LONDON (Alliance News) - Moody's Investors Service on Monday confirmed the B2 corporate family rating and the B2-PD probability of
default rating of Nostrum Oil & Gas PLC.
The ratings agency confirmed also the B2 senior unsecured rating of Zhaikmunai LLP, owned by Nostrum and the issuer of senior unsecured USD400 million and USD560 million notes. The notes are jointly and severally guaranteed by Nostrum and all its subsidiaries.
The outlook on the ratings is negative, the ratings agency said.
"Our confirmation of Nostrum's B2 rating reflects the positive impact of oil hedge on the company's credit metrics in 2016-2017," said Denis
Perevezentsev, a Moody's Vice President, Senior Credit Officer.
"However, we expect the impact of the 'lower for longer' oil price environment on the correlation between the company's production profile
and drilling program to make it challenging for Nostrum to ramp up production, leading to a negative outlook," Perevezentsev said.
Shares in Nostrum closed up 2.8% at 250.00 pence in London on Monday.
By Samuel Agini; [email protected]; @samuelagini
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