S&P cuts STI Infrastructure

Standard & Poor’s said it lowered its corporate credit rating on STI Infrastructure Sarl to B- from B. The outlook is negative.

At the same time, S&P revised the recovery rating on the company’s $215 million term loan B due 2020 to 3 from 2 and lowered the issue rating on the debt by two notches to B- from B+. The 3 recovery rating indicates an expectation of meaningful recovery (50% to 70%) in the event of payment default.

“The downgrade reflects weak operating performance during the first half of 2014, which we believe is likely to result in the company being unable to meet the credit ratios appropriate for the previous rating,” said S&P credit analyst James Siahaan in a news release.

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