Moody's drops SemGroup

Moody's Investors Service said it downgraded SemGroup's corporate family rating to Caa2 from B2, its probability of default rating to Caa3 from B2, its senior unsecured rating to Ca (LGD 4, 69%) from Caa1 (LGD 5, 79%) and its first secured bank facilities to B3 (LGD 2, 21%) from B1 (LGD 3, 39%).

These actions affect rated cross guaranteed debt at parent SemGroup, SemCams Holding Co. and SemCrude, LC, the agency noted.

The ratings had been under review for downgrade and remain on review for further downgrade, Moody's said, stating that it first downgraded SemGroup's ratings on July 17 after receiving on July 15, 2007 SemGroup's May consolidating financial statements.

Subsequently, SemGroup reported that it was evaluating filing Chapter 11 bankruptcy protection and continuing negotiations to raise new capital, the agency added.

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