DBRS confirms Cenovus Energy

DBRS said it confirmed the issuer rating and senior unsecured debt rating of Cenovus Energy Inc. at BBB.

The trend remains negative.

The agency said the confirmations consider the company’s sizable production base following last year’s acquisition of Western Canadian assets from ConocoPhillips, long life oil reserves, improved capital and operating flexibility following the acquisition and downstream integration that eases the impact of oil price volatility and changes in the heavy-light oil price differential.

However, factors moderating the ratings include an increased sensitivity post the acquisition to the Western Canadian heavy-light oil price differential, highly concentrated Western Canadian production base geared to oil sands development and high financial leverage, DBRS said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.