S&P: MB Petroleum to negative

Standard & Poor's said it revised the outlook on MB Holding Co. LLC and MB Petroleum Service LLC to negative from stable.

The agency also said it affirmed its B long-term corporate credit ratings on both companies, along with the B- rating on MB Petroleum's senior unsecured $320 million bond.

The outlook revision mainly reflects an expectation of weaker performance in 2013 and 2014 because of lower-than-expected copper ore recovery rates and the group's redeployment of drilling rigs from Asia to the Middle East, S&P said.

The agency said it also foresees high capital expenditure requirements over the coming two years in the copper business as the group transitions from over-ground to under-ground mining.

On the other hand, the group's oil production volumes have been increasing, S&P said, and it shows diversification across several business segments.

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