Bulletin: Empresa Nacional del Petroleo's New Bond Issuance Extends Its Debt Maturity Profile

SAO PAULO (S&P Global Ratings) Sept. 30, 2020--S&P Global Ratings said today that Empresa Nacional del Petroleo's (ENAP's; BBB-/Negative/--) recently announced debt issuance would allow the company to extend the average debt tenor while reducing the outstanding under its short-term facilities. We continue to view ENAP's liquidity as less than adequate, because its cash uses will exceed its sources in the next 12 months. However, we view the issuance as positive, because ENAP now has higher available undrawn credit facilities to potentially cover other working capital needs. We also view this issuance as a demonstration of ENAP's standing in the credit markets, which in our view benefits from the company's government-owned status. The new bond doesn't affect our existing ratings

...September 30, 2020 SAO PAULO (S&P Global Ratings) Sept. 30, 2020--S&P Global Ratings said today that Empresa Nacional del Petroleo's (ENAP's; ###-/Negative/--) recently announced debt issuance would allow the company to extend the average debt tenor while reducing the outstanding under its short-term facilities. We continue to view ENAP's liquidity as less than adequate, because its cash uses will exceed its sources in the next 12 months. However, we view the issuance as positive, because ENAP now has higher available undrawn credit facilities to potentially cover other working capital needs. We also view this issuance as a demonstration of ENAP's standing in the credit markets, which in our view benefits from the company's government-owned status. The new bond doesn't affect our existing ratings or outlook. We view the issuance as part of the company's plan to manage its existing debt maturity profile. Amid the anemic business conditions stemming from COVID-19 and compounded by a more...

Bulletin