Moody's cuts Trico Marine

Moody's Investors Service said it downgraded Trico Marine's ratings, including the $250 million 8.875% senior unsecured notes due 2012 to Ca from Caa3, the senior implied rating to Ca from Caa2, and the senior unsecured issuer rating to Ca from Caa3.

Moody's said the downgrade reflects the company's announcement that it will use the permitted 30-day grace period regarding the coupon payment on its bonds, which Moody's considers to be a default; the view that cash flows are too low relative to debt; Trico's plan to seek to restructure/recapitalize the company; the continued weakness of earnings and credit metrics; and material asset coverage deterioration relative to the par value of the bonds.

Trico Marine has engaged financial and legal advisers to assist the company in strategic alternatives that include restructuring the debt, asset sales and/or the sale of the company. The company has already held discussions with a group of bondholders holding about 80% of the senior notes regarding alternatives.

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