Moody's downgrades Tristan Oil

Moody's Investors Service said it downgraded the corporate family and probability-of-default ratings of Tristan Oil Ltd. to C from Caa3. The rating on the company's $300 million and $120 million senior secured notes maturing in 2012 also was downgraded to C from Caa3 with an LGD5 (77%).

The outlook is stable.

The downgrade reflects concerns about the company's ability to continue operating in view of various legal and tax-related issues, Moody's said, as well as its weakened liquidity and financial metrics.

Given its severely eroded liquidity position, the agency said it believes the company is unlikely to be able to service the coupon payment on the notes on time and potentially within the 30-day cure period.

© 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.