10th Oct 2019 11:59
(Alliance News) - Zenith Energy Ltd on Thursday said it is "pleased" with the confirmation of a B+ rating by ARC Ratings SA.
On Tuesday, ARC affirmed Zenith's B+ medium and long-term issuer rating, with a positive outlook, basing the decision on the "huge potential" for high cash generation from onshore projects in Azerbaijan.
However, the rating also reflects a "fragile" financial situation and the inherent risks and challenges in monetising Zenith's assets.
"We are pleased to have received the confirmation of our B+, with positive outlook, credit rating obtained last year. Debt financing has proven to be a successful financing solution which we shall be seeking to explore further to support the company's development in the near future," said Zenith Chief Executive Andrea Cattaneo.
On Wednesday, the company's shares jumped after the firm increased production targets at the Jafarli oil field in Azerbaijan following positive flow testing.
On Thursday, shares were 3.2% higher at 3.36 pence each, 17% higher than where they were at the start of the week.
By George Collard; [email protected]
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