S&P cuts Tidewater Midstream

S&P said it cut Tidewater Midstream and Infrastructure Ltd.’s issuer rating to B- from B+ and placed the rating on CreditWatch with developing implications.

When Tidewater extended its revolver to August 2024 from August 2022, the amended pact included a provision that accelerates the facility's maturity date to August if Tidewater is unable to refinance its $125 million of senior notes and $20 million outstanding term loan before June 30.

“We expect the company will renegotiate its debt arrangements before that date. However, for liquidity purposes, we include the $415 million of outstanding borrowings on its revolver as a current maturity to reflect the springing covenant. Under this scenario, Tidewater's weighted average debt maturity profile is less than one year, and it lacks sufficient liquidity to meet this maturity payment. Based on these assumptions, we assess Tidewater's liquidity as weak, which caps our issuer credit rating on the company at B-,” S&P said in a press release.

The developing watch mirrors the uncertainty around Tidewater's refinancing of its $125 million senior notes due in December, the agency said.

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