S&P lowers Ultra Petroleum

Standard & Poor's said it lowered the corporate credit rating on Ultra Petroleum Corp. to CC from CCC-, given a view that a default, including a selective default, is almost certain.

The outlook is negative.

The ratings on the company’s structurally subordinated unsecured debt remain at C.

The recovery remains at 6, indicating 0 to 10% expected default recovery.

The ratings reflect news that Ultra Petroleum entered into waiver and amendment agreements with its lenders to postpone and defer its March 1 debt maturity and interest payments on its senior unsecured notes until April 30, S&P said.

The deferral will allow the company more time to negotiate with lenders on a potential debt restructuring, the agency said.

The company will either default on its financial obligations or enter into a distressed exchange or restructuring, S&P said.

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