The outlook on the medium to long-term rating is 'Stable'.
The ratings are based on the existing proven reserves position of the company as a result of the exploration activities conducted in the past two years, which are generating substantial cash flow streams. At the same time, the financial obligations arising in the next few years have increased significantly (pertaining to both balance sheet and off balance sheet debt) due to the heavy capital expenditure incurred in exploration and development (E&D) activities.
We will monitor the level of cash build up from excess cash flows expected to arise from consolidation of operations in the next few years to provide cushion against temporary cash flows stress as E&D activities universally carry high risk.