S&P lowers Seven Energy

S&P said it lowered the long-term corporate credit rating to CCC+ from B- on Seven Energy International Ltd.

The outlook is negative.

The downgrade reflects Seven Energy's prospective liquidity position, which has deteriorated recently on the back of an unexpectedly prolonged shutdown of the Trans Forcados export terminal, S&P said.

Seven Energy's oil sales are heavily reliant on this terminal, the agency said.

The company is not assuming that the pipeline will be back online before July 2016, S&P added.

Therefore, the agency said it believes the risk of a covenant breach or potentially a liquidity squeeze has increased materially.

The ratings also reflect the company’s tough market environment, characterized by low oil prices, S&P said.

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