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S&P snips Gopher Resource
S&P said it lowered its ratings on Gopher Resource LLC and its senior secured term loan to CCC+ from B-. The loan’s 3 recovery rating is unchanged.
The agency said it forecasts Gopher’s leverage to linger above 10x over the next several quarters.
“A sharp drop-off in earnings and cash flow could squeeze liquidity further until profits turn around. If Gopher is unable to stabilize production and profitability to get leverage down over the next 12 months, we believe there is potential liquidity and refinance risk as its February 2025 term loan maturity approaches,” S&P said in a press release.
S&P warned Gopher faces the risk of being in noncompliance with the springing covenant under the company's asset-backed lending facility.
The outlook is negative.
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