S&P cuts Ultrapetrol (Bahamas)

Standard & Poor’s said it lowered its ratings on Ultrapetrol (Bahamas) Ltd. to B- from B and the issue-level rating on the company's senior secured notes to B- from B.

The outlook on the issuer credit rating remains negative.

S&P said the downgrade on Ultrapetrol’s ratings mainly reflects S&P’s expectation that the company will continue to post free cash flow deficits for the next several quarters due to weak market conditions, while short term debt and capex, although reduced, will further weaken the company's liquidity position. The combination of lackluster performance and cash flow pressures from debt coming due will increase the company’s refinancing risks over the next 18 months, the agency said.

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