Moody's lowers Trico Marine

Moody's Investors Service said it downgraded Trico Marine's ratings to reflect the company's weaker-than-expected fourth quarter 2003 earnings and substantial deterioration of its credit metrics with no clear catalyst for improvement during 2004.

Moody's downgraded Trico Marine's $250 million 8.875% senior unsecured notes due 2012 to Caa3 from Caa2; the senior implied rating to Caa2 from Caa1; and the senior unsecured issuer rating to Caa3 from Caa2.

The outlook is changed to negative.

On Jan. 27, Moody's downgraded the company's ratings one notch and left a stable outlook pending successful refinancing of its domestic bank revolver and sequential quarterly EBITDA not falling materially below an annualized $30 million rate while free cash flow did not experience further material weakness.

Though the company did refinance its domestic revolver in February 2004, continued softness in the company's core markets led to the company reporting EBITDA of $3.8 million for fourth quarter 2003, which is below Moody's estimates of $7 million to $8 million for the quarter and well below the $30 million annualized rate needed to support the outlook/ratings.

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