S&P downgrades Emeco

Standard & Poor's said it lowered the corporate credit rating on Emeco Holdings Ltd. to CCC+ from B-.

The agency also said it lowered the senior secured debt issue rating to CCC+ from B-. The recovery rating on the senior secured debt issue remains at 3.

The downgrades reflect concerns that Emeco's ability to meet its financial commitments has deteriorated, S&P said.

Worsening conditions in the company's Canadian oil-sands segment due to a depressed oil-price environment are expected reduce its earnings in 2016, the agency said.

This is expected to place sustained pressure on Emeco's cash position, making the company increasingly vulnerable, S&P said.

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