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S&P cuts Trailer Bridge
Standard & Poor's said that it lowered the long-term corporate credit rating on Trailer Bridge Inc. to CCC from B- and the rating on the company's senior secured debt to CCC from B-. The recovery rating was revised to 4 from 3, indicating average (30%-50%) recovery in the event of a payment default.
The outlook is developing.
The downgrade reflects the view that Trailer Bridge's refinancing and repricing risks have increased with the Nov. 15 maturity of its $82.5 million of senior secured notes, the agency said.
The ratings on Trailer Bridge reflect its weak liquidity, highly leveraged financial profile, concentrated end-market demand and participation in the capital-intensive and competitive shipping industry, the agency said.
Positive credit factors include the less-cyclical nature of demand for consumer staples that Trailer Bridge mostly carries and barriers to entry due to the Jones Act, the agency added.
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