Fitch downgrades Ithaca Energy

Fitch Ratings said it downgraded Ithaca Energy Ltd.'s issuer default rating to B from B+ and $500 million of notes issued by Ithaca Energy (North Sea) plc and guaranteed by Ithaca Energy to B-/RR5/20% from B+/RR4/40%. The agency also placed the ratings on rating watch negative.

The downgrade and RWN reflect the potential pressure Ithaca may face due to liquidity issues experienced by its 100% parent, Delek Group. While Ithaca's ring-fencing mechanism should provide protection to its credit profile, Fitch sees a risk that decisions taken at the parent could have negative consequences for Ithaca's creditworthiness.

Fitch also downgraded Ithaca's $500 million of senior unsecured notes given their worsened recovery prospects based on Fitch's updated oil price assumptions.

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