S&P lowers Trailer Bridge

Standard & Poor's said it lowered the long-term corporate credit rating on Trailer Bridge Inc. to SD (selective default) from CCC and removed it from CreditWatch, where it was placed with negative implications in September.

The agency also said it lowered the rating on the company's senior secured notes to CC from CCC. The notes remain on CreditWatch with negative implications, S&P said.

The downgrades reflect confidential information that Trailer Bridge has made available regarding its debt obligations, the agency said.

There are imminent refinancing risks and the company has a high probability of default given that the senior secured notes mature on Nov. 15, 2011, S&P said.

Under the terms of the company's credit agreement on its senior secured debt, failure to refinance the senior secured notes by Oct. 15 was an event of default, the agency said.

But on Oct. 24, the company entered into a forbearance agreement with its senior secured debt holders, who have agreed not to exercise their rights and remedies, including acceleration of payments due under the senior secured debt, until Oct. 31, S&P said.

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