S&P lowers Erickson, debt to CCC+

S&P said it lowered its corporate credit rating on Erickson Inc. to CCC+ from B-.

The outlook is negative.

At the same time, the agency lowered its issue-level rating on the company's second-lien debt to CCC+ from B-. The 3 recovery rating remains unchanged, indicating an expectation for meaningful (50%-70%; lower half of the range) recovery in the event of a default.

"Our negative outlook on Erickson reflects the pressure on the company's liquidity due to its declining revenue and earnings," S&P credit analyst Jeff Ward said in a news release.

"Erickson's contract losses and the weak demand in its business segments have left the company increasingly vulnerable to a liquidity shortfall. In addition, we believe that the company's capital structure is unsustainable over the long-term."

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