Gran Tierra Energy Inc. Downgraded To 'B' On Weaker Credit Metrics Due To Lower Oil Prices; Outlook Negative

The credit metrics of Canada-based oil and gas producer Gran Tierra Energy Inc. (GTE) will be weaker than our expectations for the next two years following the March 19, 2020, revision of our oil and gas price assumptions. GTE faces high exposure to lower crude oil prices and the current economic downturn, which we believe will drive the company to reduce operations in high-cost production wells by 19% in 2020 (compared with 2019) and to significantly reduce its capital expenditure (capex) prospects to preserve its liquidity. On March 27, 2020, S&P Global Ratings lowered its issuer credit and issue-level ratings on GTE to 'B' from 'B+'. The negative outlook indicates a possible delay in the company's financial performance improvement, based

...March 27, 2020 - The credit metrics of Canada-based oil and gas producer Gran Tierra Energy Inc. (GTE) will be weaker than our expectations for the next two years following the March 19, 2020, revision of our oil and gas price assumptions. - GTE faces high exposure to lower crude oil prices and the current economic downturn, which we believe will drive the company to reduce operations in high-cost production wells by 19% in 2020 (compared with 2019) and to significantly reduce its capital expenditure (capex) prospects to preserve its liquidity. - On March 27, 2020, S&P Global Ratings lowered its issuer credit and issue-level ratings on GTE to 'B' from 'B+'. - The negative outlook indicates a possible delay in the company's financial performance improvement, based on our uncertainty regarding the recovery in crude oil prices for the next 12-18 months. This could occur if the economic downturn and the COVID-19 pandemic persist for a prolonged period, compromising the company's growth prospects....

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