S&P cuts Lone Pine Canada

Standard & Poor's said it lowered its long-term corporate credit rating on Lone Pine Resources Canada Ltd. to D from CCC- after the company announced its intent not to pay its $10 million semiannual interest payment due Aug. 15, 2013, on its 10 3/8% senior unsecured notes due 2017.

At the same time, S&P lowered its issue-level ratings on the company's 10 3/8 % senior unsecured notes to D from C. The 6 recovery rating on the notes is unchanged.

The agency removed the ratings from CreditWatch with negative implications, where they were placed July 12.

"Although the notes allow for a 30-day grace period following the interest payment date, we believe that Lone Pine will be unable to make any interest payments during the grace period," S&P credit analyst Aniki Saha-Yannopoulos said in a news release. "This constitutes an event of default as per our criteria."

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