S&P: Tervita view to negative

Standard & Poor's said it revised the outlook on Tervita Corp. to negative from stable.

S&P also said it affirmed the B long-term corporate credit rating on Tervita, along with the B rating on the its senior secured debt and the CCC+ ratings on its unsecured and subordinated debt.

The 3 recovery rating on the secured debt and 6 recovery rating on the unsecured and subordinated debt are unchanged, indicating 50% to 70% expected recovery and 0 to 10% expected recovery, respectively.

The agency said it expected Tervita to generate significant EBITDA in 2012 such that debt-to-EBITDA would improve below 5.7x at year-end 2012.

However, lower drilling activity combined with wet weather and delays in facilities coming online have reduced expectations for the company's 2012 and 2013 EBITDA, S&P said.

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