Oil And Gas Producer Gran Tierra Energy Outlook Revised To Positive From Stable On Lower Leverage; 'B' Ratings Affirmed

Colombia-based oil and gas producer Gran Tierra Energy Inc. (GTE) continues benefiting from rising crude oil prices and has used its operating cash flow to reduce debt. As of March 31, 2022, the company's outstanding balance on its revolving credit facility (RCF) reached about $40 million (from $175 million on June 30, 2021) and we expect GTE to liquidate the remaining before the second quarter ends. On May 25, 2022, S&P Global Ratings revised the outlook on GTE to positive from stable and affirmed its 'B' issuer credit rating on the company. At the same time, we affirmed our 'B' issue-level rating on the company's senior unsecured debt and placed it on CreditWatch with negative implications given higher risk of

...May 25, 2022 - Colombia-based oil and gas producer Gran Tierra Energy Inc. (GTE) continues benefiting from rising crude oil prices and has used its operating cash flow to reduce debt. As of March 31, 2022, the company's outstanding balance on its revolving credit facility (RCF) reached about $40 million (from $175 million on June 30, 2021) and we expect GTE to liquidate the remaining before the second quarter ends. - On May 25, 2022, S&P Global Ratings revised the outlook on GTE to positive from stable and affirmed its 'B' issuer credit rating on the company. - At the same time, we affirmed our 'B' issue-level rating on the company's senior unsecured debt and placed it on CreditWatch with negative implications given higher risk of subordination in the next 90 days. - We also assigned GTE's 8.75% proposed amortizing senior secured bond due 2029 our 'B' issue-level rating. - The positive outlook reflects our view that the company will achieve production volumes above 32,000 barrels of oil...

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