S&P cuts Tuscany International Drilling

Standard & Poor's said it lowered its long-term corporate credit rating on Tuscany International Drilling to CC from B- and removed the rating from CreditWatch with negative implications.

The outlook is negative.

S&P subsequently withdrew the rating at the issuer's request.

S&P said the downgrade reflects the company's recent announcement that it would not be able to make the Dec. 15 principal payment of about $14.8 million under its existing credit agreement.

Tuscany expects to enter into a new credit agreement with the lenders before the principal payment is due. However, given the proximity of the maturity and the company's weak financial metrics, S&P said it would likely consider the renegotiation as a de facto restructuring.

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