North American Energy (NOA) Issues Response to Moody's, S&P Downgrades; May Put NAEP in Covenant Breach

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North American Energy Partners Inc. (NYSE: NOA) issued an update on the current business environment in response to the recent downgrades that were announced by Moody's and Standard and Poor's.

The combined impact of the issues affecting a number of operating sites in the oil sands and Pipeline businesses are anticipated to put NAEP in a position of potential covenant breach on one of its financial ratios in the Company's credit agreement. In anticipation of this potential covenant breach, NAEP is proactively working with its lending syndicate to secure relief in the event of a potential fourth-quarter breach of its debt covenants. These covenants are based on Consolidated EBITDA as defined in the Company's credit agreement.

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