S&P lowers Natural Resource

S&P said it lowered the corporate credit rating on Natural Resource Partners LP to CCC+ from B.

The agency also said it lowered the rating on the company’s $425 million 9 1/8% senior unsecured notes due 2018 to CCC- from B.

The agency also said it revised the recovery rating on the notes to 6 from 4. The 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is negative.

The negative outlook reflects a view that Natural Resource’s liquidity will remain under pressure in the next 12 months, S&P said.

This is caused by the continued weakness of the coal and oil and gas segments, which may limit the company’s ability to generate cash flow, meet its covenant requirements under its operating company credit facility and make required payments in next 12 months, the agency said.

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