{"id":33541,"date":"2016-08-26T22:21:28","date_gmt":"2016-08-27T03:21:28","guid":{"rendered":"http:\/\/prefblog.com\/?p=33541"},"modified":"2016-08-26T22:21:28","modified_gmt":"2016-08-27T03:21:28","slug":"hse-credit-outlook-improves-to-stable-says-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33541","title":{"rendered":"HSE: Credit Outlook Improves To &#039;Stable&#039; Says S&amp;P"},"content":{"rendered":"<p>Standard &#038; Poor&#8217;s <a href=\"https:\/\/www.standardandpoors.com\/en_US\/web\/guest\/article\/-\/view\/type\/HTML\/id\/1701245\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>\u2022We are revising our outlook on Husky Energy Inc. to stable from negative.\n<li>\u2022We are also affirming our ratings on the company, including our &#8216;BBB+&#8217; long-term corporate credit rating (CCR) on Husky.\n<li>\u2022The outlook revision reflects the company&#8217;s successful completion of asset sales to date, which have strengthened cash flow metrics (on a net debt basis) above our forecast estimates from October 2015.\n<li>\u2022The &#8216;BBB+&#8217; CCR reflects a &#8216;bbb&#8217; initial anchor score, and the application of a one-notch enhancement due to our assessment of Husky as a moderately strategic holding for its major shareholder.\n<li>\u2022We are also removing the positive CRA modifier, because the factors supporting its initial application have been satisfied.<\/ul>\n<p><b>&#8230;<\/b><br \/>We would lower the rating to &#8216;BBB&#8217; if the company&#8217;s financial risk profile deteriorates materially from our current estimates. Specifically, we would lower the rating if Husky&#8217;s three-year, weighted-average FFO-to-debt ratio fell below 30%, and we believed it would remain below this threshold consistently. FFO-to-debt ratios below this level would neither support a &#8216;bbb&#8217; anchor nor the application of a positive CRA modifier.<\/p>\n<p>Based on our current assessment of Husky&#8217;s business risk profile, which we do not expect to strengthen during our 24-month outlook period, we do not believe the company&#8217;s financial risk profile could strengthen to the level necessary to support an &#8216;A-&#8216; rating. To support that rating, Husky&#8217;s three-year, weighted-average FFO-to-debt ratio would have to strengthen and remain above 60%, and the company would need to consistently generate positive FOCF such that its FOCF-to-debt ratio would remain above 40%. Due to the oil and gas industry&#8217;s capital-intensive nature, we do not believe an oil and gas company could generate and sustain positive FOCF at these levels, so an upgrade to &#8216;A-&#8216; is not likely during our outlook period.<\/p><\/blockquote>\n<p>Affected issues are HSE.PR.A, HSE.PR.B, HSE.PR.C, HSE.PR.E and HSE.PR.G.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Standard &#038; Poor&#8217;s has announced: \u2022We are revising our outlook on Husky Energy Inc. to stable from negative. \u2022We are also affirming our ratings on the company, including our &#8216;BBB+&#8217; long-term corporate credit rating (CCR) &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-33541","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33541"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33541\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}