S&P lowers Imperial Metals

Standard & Poor’s said it lowered its ratings on Imperial Metals Corp. to CCC+ from B- following the breach of the company’s tailings storage facility at its Mount Polley mine in British Columbia.

The outlook is negative.

S&P also lowered its issue-level rating on the company’s senior unsecured debt to CCC+ from B-. The recovery rating on the company’s senior unsecured notes is unchanged at 4, which corresponds with average (30%-50%) recovery in S&P’s simulated default scenario.

“The downgrade of Imperial Metals follows the breach of the company’s tailings storage facility at its Mount Polley mine in British Columbia, which we believe will have a serious negative effect on the company’s cash flow and liquidity,” said S&P credit analyst Jarrett Bilous in a news release. “The cause of the breach is unknown and the mine has been placed on care and maintenance.”

S&P trims Evergreen Tank

Standard & Poor’s said it lowered its corporate credit rating on Evergreen Tank Solutions Inc. to B- from B. The outlook is negative.

At the same time, S&P lowered the issue-level rating on the company’s $207 million senior secured term loan due 2018 one notch to CCC+ from B-. The 5 recovery rating on the debt remains unchanged, indicating an expectation for modest recovery (10%-30%) in the event of a payment default.

“The downgrade reflects ETS’ weaker-than-expected operating performance in recent quarters and its continued high debt levels due to its funding of bolt-on acquisitions in 2013,” said S&P credit analyst Carol Hom in a news release.

S&P lowers Mriya to SD

Standard & Poor’s said it lowered its corporate credit rating on Mriya Agro Holding plc to SD (selective default) from CCC.

At the same time, S&P lowered its issue rating on the group’s $400 million senior notes maturing 2018 to CC from CCC. S&P also lowered to CC from CCC the issue rating on the group’s $250 million notes maturing 2016, on which only $71.5 million is outstanding.

The recovery rating is unchanged at 4 for both notes, indicating S&P’s expectation of average (30%-50%) recovery prospects in the event of a payment default.

S&P said the downgrade follows the group’s decision to miss some payments on certain debt obligations while nominating financial advisers and engaging in discussions with lenders for a debt restructuring.

S&P affirms Tervita

Standard & Poor’s said it affirmed its B- long-term corporate credit rating on Tervita Corp. The outlook is stable.

At the same time, S&P affirmed its B- issue-level rating and 3 recovery rating on the secured notes and its CCC issue-level rating and 6 recovery rating on the company’s subordinated notes. The 3 recovery rating indicates an expectation of meaningful (50%-70%) recovery in a default scenario, while the 6 recovery rating indicates an expectation of negligible (0%-10%) recovery.

“We have revised Tervita’s business risk profile to ‘weak’ from ‘fair’ to reflect our view that the company’s operations, although less volatile than those of other oilfield service companies, faces a competitive landscape that significantly pressures its gross margins,” said S&P credit analyst Aniki Saha-Yannopoulos in a news release.

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