Ithaca Energy Placed on Fitch Rating Watch Positive Following Canadian Acquisition

Ithaca Energy (LSE:ITH) has announced that Fitch Ratings has placed its BB- long-term issuer default rating on Rating Watch Positive following the company’s recently announced acquisition of offshore Canadian oil and gas assets from Suncor Energy.

The rating action reflects Fitch’s assessment of the potential impact of the transaction on Ithaca’s operational scale, geographical diversification and exposure to different fiscal and regulatory environments.

According to Ithaca, Fitch identified the increased size of the group’s asset portfolio and its expansion into Canada as factors supporting the decision. The ratings agency also highlighted Canada’s comparatively stable operating environment and more favourable fiscal regime relative to the UK Continental Shelf.

A Rating Watch Positive designation indicates that Fitch is considering a potential upgrade to Ithaca’s credit rating. It does not constitute an immediate change to the company’s existing BB- rating.

Separately, Moody’s reaffirmed Ithaca Energy’s Ba3 corporate credit rating following the announcement of the Canadian transaction, leaving its existing assessment unchanged.

The two ratings actions follow Ithaca’s agreement to acquire offshore Canadian assets from Suncor Energy, extending the company’s operations beyond its established production and development activities in the UK Continental Shelf.

Ithaca said the acquisition forms part of its strategy to increase operational scale and diversify its asset base across different geographical markets.

Management considers the ratings developments consistent with its objectives of expanding the business and establishing a broader production portfolio. Any subsequent change to the company’s credit ratings will depend on the respective agencies’ assessments.

The acquisition represents an expansion of Ithaca’s offshore exploration and production activities into Canada, adding a second geographical market alongside its existing UK operations.

Ithaca Energy PLC is a London-listed oil and gas exploration and production company with assets primarily located in the UK Continental Shelf. The company is pursuing geographical diversification through its proposed Canadian acquisition, with a focus on offshore production, development opportunities and long-term cash flow generation.