S&P cuts Ultrapetrol, notes to D

Standard & Poor's said it lowered its corporate credit rating on Ultrapetrol (Bahamas) Ltd. to D from CC.

At the same time, S&P lowered its issue-level rating on the company's senior secured notes to D from CC.

The agency removed the ratings from CreditWatch, where they were placed Dec. 15.

On Dec. 15, Ultrapetrol announced it would not pay interest and principal on some loans, and interest on its notes. The company had a 30-day cure period to make the payments. During this time, it was able to reach forbearance agreements with some banks, but has not yet reached one with noteholders.

“Because Ultrapetrol did not pay interest on the notes, and changed terms and conditions of the original loan contracts, we consider this a general default on its obligations,” said S&P credit analyst Marcus Fernandez in a news release.

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