S&P cuts Iracore, notes to CCC-

S&P said it lowered its corporate credit rating on Iracore International Holdings Inc. to CCC- from CCC+.

The outlook is negative.

At the same time, the agency lowered its issue-level rating on the company's outstanding second-lien notes to CCC- from CCC+. The recovery rating on the notes remains 4, reflecting an expectation of average (30% to 50%) recovery to creditors in the event of a payment default.

"The downgrade reflects our expectation that the company will continue to face very challenging market conditions in 2016 leading to weak liquidity as a result of the effects of persistently low oil and natural gas prices, and our expectation that Canadian oil sands companies will hold back expansion projects given the uncertainty in commodity prices," S&P credit analyst Aaron McLean said in a news release.

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