S&P cuts Gopher Resources

S&P said it lowered its ratings on Gopher Resource LLC and its senior secured term loan to B- from B. The loan’s 3 recovery rating is unchanged.

“We expect Gopher's credit measures to remain weak after several years of a challenging operating environment that has sustained leverage above 7x. With supportive end-market demand, we believe leverage improvement will depend on the company's ability to resolve the operational issues and consistently improve its run-rate production,” the agency said in a press release.

However, unless Gopher’s leverage and production improve over the next 12 to 18 months, refinancing the term loan could become riskier, S&P warned.

The outlook is stable.

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