Pacific Rubiales Gets Positive Outlook

S&P has raised the outlook on Pacific Rubiales’ BB rating to positive from stable, it says. The agency cites the Colombian oil producer’s rise in production volumes and reserves and continuing strong financial performance as among the reasons for the move. Pacific Rubiales saw revenues double to $3.7bn as of March 31, 2012, up from the same time frame in 2011. Its debt to Ebita ratio fell to 0.6x from 0.9x last year. The ratings could rise to BB+ if the company continues to strengthen its operating performance by developing its reserve base further, implementing its growth strategy successfully, and fully integrating its new acquisitions in the next 12-18 months. If production increases are lower than expected, however, the outlook could return to stable.