S&P cuts Trico Marine

Standard & Poor's said it lowered its issuer credit and senior unsecured ratings on Trico Marine Services Inc. to CC from CCC+ and to C from CCC-, respectively. At the same time, S&P revised the CreditWatch listing to negative from developing.

S&P said the rating action follows the announcement that Trico will not make its $11.1 million senior notes interest payment due May 15 and instead will use a 30-day grace period to continue its announced study of strategic alternatives for the company, including the possible restructuring or refinancing of the senior notes.

S&P said it views Trico's failure to make its scheduled interest payment as an event of default, although indentures on the $250 million senior notes allow a 30-day grace period before Trico would be in default. As such, on missing the May 15 payment, the ratings on Trico and the senior notes would be lowered to D.

If Trico makes the interest payment within the 30-day grace period, S&P said it would reevaluate its ratings and outlook on Trico.

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