Moody’s cuts Triangle USA, notes

Moody's Investors Service said it downgraded Triangle USA Petroleum Corp.’s corporate family rating to Caa2 from Caa1, probability of default rating to Caa2-PD from Caa1-PD and senior unsecured notes to Caa3 from Caa2.

The speculative grade liquidity rating was withdrawn.

The outlook remains negative.

"Given our expectation for low commodity prices through 2018 and our expectation that TUSA management will not resume drilling operations in this price environment, we expect that production could decline to a level that no longer supports the company's debt burden," Moody's vice president, senior analyst John Thieroff, said in a news release.

"As a result of these production declines, the company's leverage metrics will deteriorate further, increasing the likelihood that the company will pursue a debt restructuring."

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