S&P lowers Southcross Energy

S&P said it downgraded its issuer credit rating on Southcross Holdings Borrower LP and its issue-level rating on the company's senior secured debt to CCC from CCC+ and removed the ratings from CreditWatch, where S&P placed them with negative implications on Aug. 1.

The outlook is negative.

S&P said its 3 recovery rating on the senior secured debt remains unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default.

At the same time, S&P lowered the issuer credit rating on master limited partnership Southcross Energy Partners LP and the issue-level rating on its senior secured debt to CCC from CCC+ and removed the ratings from CreditWatch, where S&P placed them with negative implications on Aug. 1, 2018. The outlook is negative.

The 3 recovery rating remains unchanged, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default.

“The downgrade reflects our view that the Southcross entities have limited liquidity, which increases the potential for a debt restructuring, covenant violation, or default in the next 12 months,” S&P said 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.