Post by
Huntamun1234 on Jul 22, 2024 8:29pm
Strathcona Debt Rating
Strathcona Seeks Higher Rating for Potential Canadian Debt Deal
2024-07-19 13:08:03.877 GMT
-- Canadian energy driller Strathcona Resources
Ltd. is pursuing an investment-grade rating from Morningstar
DBRS so it can borrow on more favorable terms in the country,
according to people familiar with the matter.
The potential rating could allow it to issue loonie-
denominated bonds with narrower premiums than its junk-rated US-
dollar bonds, the people said, asking not to be identified
discussing a private matter. Morningstar DBRS doesn’t currently
cover the firm.
Strathcona and Morningstar DBRS declined to comment.
In the US, Strathcona is rated at B+ by S&P, four steps
below investment grade. Moody’s Ratings gave it an equivalent B1
rating while Fitch last week affirmed its B+ rating before
withdrawing coverage.
Read More: Ex-Investment Banker Turns Oil Tycoon With
Strathcona Deal Spree
S&P also revised the company’s outlook to positive in May,
saying its production scale and reserves put it on par with
higher-rated peers.
Strathcona had C$2.6 billion of debt as of March 31 and
expected to cut that to C$2.5 billion by the end of June,
according to its earnings report.