Moody’s downgrades Senegal to Caa1 amid rising debt concerns
Investing.com - BMO Capital downgraded Greenfire Resources (TSX:GFR) from Outperform to Market Perform with a price target of C$8.00, citing concerns about the company’s financial outlook in a lower oil price environment.
The downgrade comes as part of BMO Capital’s broader commodity price update, with the firm specifically highlighting challenges Greenfire faces in a "low-to-mid US$60/bbl price environment."
BMO Capital expects Greenfire to "materially outspend cash flow in 2026," which would drive the company’s leverage higher, creating potential financial strain.
The investment firm also pointed to limited trading liquidity that has "made for an inefficient share price" as another factor in its rating change.
While BMO Capital acknowledged that Greenfire "is on the right course to deliver longer-term value" through well-pair oriented development that should provide "solid volume growth and a stronger cost structure," it cautioned that these improvements are "likely several years in the making and the interim will be choppy."
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