10:21 AM EDT, 05/14/2024 (MT Newswires) -- S&P Global Ratings on Monday revised the outlook on Strathcona Resources ( STHRF ) to Positive from Negative.

The outlook revision comes after the company increased its production scale, and repaid the outstanding amounts under the term loan facility, alleviating associated refinancing risk.

Based on projected free cash flows and the recent upsizing of the credit facility to $2.5 billion, the rating agency believes the company will maintain sufficient liquidity over the agency's forecast period.

S&P also affirmed its "B+" issuer credit rating on Strathcona and "BB-" issue-level rating on the senior unsecured notes.

"The positive outlook reflects the potential for an upgrade if the company continues to demonstrate consistent operating performance at current production levels and lowers borrowings under the credit facility," the agency said.

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