S&P Downgrades Kosmos Energy to ‘CCC+’ Amid Liquidity Strains and Refinancing Risks

Kosmos Energy Ltd. (NYSE: KOS) is one of the stocks that look extremely cheap on paper. On June 16, 2025, S&P Global Ratings downgraded Kosmos Energy’s issuer-level credit rating from ‘B’ to ‘CCC+’, warning of rising liquidity pressures and refinancing risk due to upcoming debt maturities and tight cash flow.

S&P also lowered its recovery rating and flagged potential covenant breaches later in 2025 if refinancing fails.

S&P Downgrades Kosmos Energy to 'CCC+' Amid Liquidity Strains and Refinancing Risks

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The average consensus remains a Moderate Buy, with price targets clustering around $4.93, but again, no July updates to base a write-up on.

Kosmos Energy, headquartered in Dallas, explores and produces oil and gas offshore in Ghana, Equatorial Guinea, the Gulf of Mexico, Mauritania, Senegal and other frontier basins.

While we acknowledge the potential of KOS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KOS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.