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Puma Energy was upgraded to Ba3 from B1 by Moody’s. Moody’s also upgraded the senior unsecured notes due 2024 and 2026 issued by Puma International Financing S.A. and guaranteed by Puma to Ba3 from B1. The rating action reflects progress made by the company on improving credit metrics via debt reduction and improving operating performance in recent quarters. In 2023, Puma Energy made significant progress on improving its capital structure which improved its maturity profile. For example, the repayment of $378mn of its 5.125% 2024s and the expected further repayment of the remaining $153.5mn in December 2023 showed intention to pay down debt. This was also supported by a conversion of a $358mn loan to equity. Moody’s added that Puma generated solid profits in 2023 with EBITDA of $405mn in the first none months of this year, well above its 2021 numbers. Owing to the above factors, Moody’s expects adjusted debt-to-EBITDA ratio to fall to ~3.5x for 2023 from 5.0x in 2022.
Its bonds traded flat with its 5.125% 2024s at 99.3 cents on the dollar, yielding 5.96%.