Tullow Oil plc -- Moody's affirms Tullow Oil's ratings; stable outlook
Rating Action: Moody's affirms Tullow Oil's ratings; stable outlookGlobal Credit Research - 10 Feb 2022London, 10 February 2022 -- Moody's Investors Service ("Moody's") has today affirmed the B3 corporate family rating (CFR) and B3-PD probability of default rating (PDR) of Tullow Oil plc (Tullow Oil or the company). For additional information on the sovereign rating action, please refer to the related announcement: https://www.moodys.com/research/--PR_461698.RATINGS RATIONALEThe affirmation of Tullow Oil's ratings reflects Moody's view that the company can be rated one notch above the sovereign rating despite generating 70% of its daily production from oil fields in Ghana. Tullow Oil benefits from a degree of insulation from economic and financial disruptions potentially arising in case of sovereign distress, owing to: (i) its offshore production and direct sales of crude oil outside of the African continent, (ii) the limited exposure to foreign exchange risk supported by US dollar revenues, (iii) an established and diversified financing framework, independent of the Ghanaian domestic banking system and (iv) protection from adverse changes in tax regimes through stabilisation clauses included in the petroleum agreements.
