Moody’s: Ithaca Energy to stable

Moody's Investors Service said it affirmed Ithaca Energy Inc.'s B3 corporate family rating, B3-PD probability of default rating and Caa2 senior unsecured note rating.

The notes are guaranteed on a senior subordinated basis by certain Ithaca subsidiaries.

The outlook on all ratings was changed to stable from negative.

Moody’s said the outlook change takes into account reduced capital and execution risk as Ithaca has completed virtually all of the development spending on its key Greater Stella Area (GSA) project, with the FPF-1 floating production facility expected to sail from the yard to the field in late July 2016, after completion of the final marine system trials. The production is expected to come onstream about three months after sail away of FPF-1.

Timely completion of the GSA project with ramp up to its full production capacity of 16,000 BOE/day net to Ithaca, which will enable the company to more than double its current average daily production, will be key to the company's production and cash flow growth in 2017.

The stable outlook factors lower execution risk on the GSA project and is expected to be completed in line with prevailing guidance with ramp up to full production capacity by the end of 2016, while maintaining a good liquidity profile, the agency said.

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