Moody's cuts Ultrapetrol

Moody's Investors Service said it downgraded Ultrapetrol (Bahamas) Ltd.'s corporate family rating to Caa1 from B3.

Concurrently, Moody's downgraded the company's $180 million senior secured notes due November 2014 to Caa1 from B3.

A speculative grade liquidity rating of SGL-3 has been assigned reflecting an adequate liquidity profile.

The outlook is stable.

Moody's said the downgrade was prompted by its expectation that leverage and interest coverage metrics over the next twelve to eighteen months will be reflective of a Caa1 corporate family rating.

Operating performance is expected to be negatively affected by a lower expected South American soybean crop for 2012 due to the drought in Paraguay and Argentina as well as higher costs stemming from inflationary pressures in Argentina and revaluation of the Brazilian real, the agency said.

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