S&P downgrades Trident

Standard & Poor's said it lowered the long-term corporate rating on Trident Resources Corp. to CCC+ from B-, along with the rating on subsidiary Trident Exploration Corp.'s senior unsecured debt to B- from B.

The 2 recovery rating on Trident Exploration's notes is unchanged and indicates 70% to 90% expected default recovery.

The outlook is negative.

The downgrade reflects an opinion that without external funding or significant improvement in natural gas prices, Trident's existing operations will not be able to generate sufficient funds from operations to fund its maintenance capital expenditure beyond fiscal 2013, S&P said.

The agency acknowledged that above-market price gas hedges will provide the company with the cash flow to fund its maintenance capital expenditures and finance expenses through 2013.

But, the company needs external funding to sustain its current operations through 2014, said Aniki Saha-Yannopoulos, an S&P analyst.

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