10:07 AM EDT, 03/19/2024 (MT Newswires) -- S&P Global Ratings on Monday upgraded Cenovus Energy's ( CVE ) long-term issuer credit and senior unsecured debt ratings to BBB from BBB-.

Also, the rating agency raised its global scale and Canada scale preferred share ratings to BB+ and P-3(High), from BB' and P-3, respectively.

Ongoing debt reduction has reduced Cenovus Energy's ( CVE ) total gross and net reported debt to about C$7.3 billion and C$5.1 billion, respectively, at year-end 2023.

With the company having no significant debt maturities occurring before 2027, the agency expects the company to increase and hold sufficient cash on its balance sheet to achieve its C$4 billion net debt target during 2024.

The stable outlook reflects S&P Global Ratings' expectation that the company's low long-term net debt level will provide an effective offset to the revenue and cash flow volatility inherent in the upstream segment's incremental heavy oil production exceeding its deep conversion refining capacity, as well as the volatility inherent in refining margins.

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