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S&P downgrades Abaco Energy
S&P said it lowered the corporate credit rating on Abaco Energy Technologies LLC to CCC from CCC+.
The agency also said it lowered the rating on the company's first-lien debt to CCC from B- and revised the recovery rating to 3 from 2, indicating 50% to 70% expected default recovery.
The outlook is negative.
The downgrades reflect an assessment of the company's high interest and amortization costs, which will continue to be a burden on liquidity despite the equity infusion from its investors completed earlier this year, S&P explained.
The company's financing costs, which are higher than the projected EBITDA for 2016, present considerable risk, the agency said.
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