Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers O > Headlines for Oxbow Carbon LLC > News item |
S&P lowers Oxbow Carbon
Standard & Poor’s said it lowered its corporate credit rating on Oxbow Carbon LLC to BB- from BB. The outlook is stable.
At the same time, in conjunction with the downgrade of the corporate credit rating, S&P lowered the ratings on the company’s senior secured $800 million first-lien revolving credit facility, $300 million term loan A, and $350 million term loan B to BB from BB+. The recovery rating on these debt obligations remains 2, indicating an expectation of substantial recovery (70% to 90%) in the event of a payment default.
S&P also lowered the ratings on the company’s $350 million senior secured second-lien term loan B to B+ from BB-. The recovery rating on this debt remains 5, indicating an expectation of modest recovery (10% to 30%) in the event of a payment default.
“The downgrade reflects our view that the company’s debt leverage will be between 4x to 5x and funds from operations [FFO] to debt will be slightly under 15% in 2014, consistent with an ‘aggressive’ financial risk profile as per our criteria versus our previous ‘significant’ financial risk assessment,” said S&P credit analyst William Ferara in a news release.
© 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.