S&P downgrades Hunt Oil

Standard & Poor’s said it lowered the corporate credit rating on Hunt Oil Co. to BBB- from BBB.

The outlook is negative.

Hunt’s credit measures will remain below expectations for the BBB rating in the next year primarily due to the interruption of shipments from Yemen LNG and because of low oil prices, S&P said.

The negative outlook reflects that potential risks of delays or disruptions in resumption of shipments could cause delays in the ability of Hunt to receive distributions from the project in the second half of 2016, the agency said.

The outlook won’t be revised back to stable unless distributions to shareholders resume after debt-service reserve has been replenished, S&P said.

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