S&P lowers North American Energy

Standard & Poor's said it lowered its long-term corporate credit rating on North American Energy Partners Inc. to B+ from BB-. At the same time, the senior secured bank loan rating was lowered to BB- from BB, and the senior unsecured rating was lowered to B from B+.

The outlook is stable.

S&P said the rating action reflects weaker-than-expected profitability and free cash flow generation. As a result, debt reduction will be limited in the near term. The company has experienced weaker demand than forecasted for its oil sands mining and site preparation services, particularly at the Albian Sands project, which is a major customer of North American Energy Partners' services.

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