Moody's lowers OPTI Canada

Moody's Investors Service said it downgraded OPTI Canada Inc.'s corporate family rating to B3 from B1, lowered its $1.75 billion senior second secured notes to B3 from B2 and confirmed its amended C$350 million senior first secured bank revolving credit facility at Ba3.

The outlook is negative.

The agency said the downgrade reflects a reduced likelihood that OPTI and its joint venture partner, Nexen, will bring their integrated Long project adequately close to design specifications in time for OPTI to demonstrate internal support of its debt structure by the end of 2009. And with the pace of cash flow growth highly uncertain, Moody's said it remains unclear how much OPTI will need to borrow under its revolver this year and whether it will meet its Sept. 30, 2009 bank leverage covenant.

The ratings are supported by significant internal liquidity to fund a substantial proportion of 2009 needs and the agency's view that OPTI would ultimately be able to negotiate temporary covenant relief in need.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.