S&P cuts Trident Resources

Standard & Poor’s said it lowered its long-term corporate credit rating on Trident Resources Corp. to CCC- from CCC+. The outlook is negative.

At the same time, S&P lowered its rating on subsidiary Trident Exploration Corp.’s senior unsecured debt to CCC from B-. The recovery rating on these notes is unchanged at 2 and indicates an expectation for substantial recovery (70%-90%; at the upper half of the range) under a simulated default scenario.

“The downgrade reflects our view of the continued deterioration of Trident’s EBITDA generation and liquidity position, which we believe compromises its ability to fund the upcoming interest payment due on April 13, 2016,” said S&P credit analyst Michelle Dathorne in a news release. “As a result, we believe there is a heightened risk of a default, as well as a covenant breach.”

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