...Fitch Ratings has assigned first-time Long-Term Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) of `BB¡' for Canacol Energy Ltd. Fitch has also assigned an expected rating of `BB¡(EXP)' to Canacol's proposed seven-year senior unsecured issuance of up to USD350 million. The Rating Outlook is Stable. The ratings reflect Canacol's long-term contracted sales, with investment-grade counterparties, low production cost and regional importance for Colombia (BBB/Stable). The ratings also benefit from the company's robust reserve life, followed by an adequate capital structure. Fitch expects Canacol will remain a low cost producer, while incrementally increasing production levels to an average of 32,000 barrels of oil equivalent per day (boed) from 18,000boed for 2018, once the Promigas S.A. E.S.P. (BBB¡/Stable) expansion goes on line by YE 2018. Canacol's ratings are constrained by the company's relatively small size and low diversification of gas fields. The company's...
