S&P Downgrades Ultrapetrol (ULTR) to 'D' Amid Miss Interest Payment

Standard & Poor's Ratings Services said it lowered its corporate credit rating on South American shipping company Ultrapetrol (Bahamas) Ltd. (NASDAQ: ULTR) to 'D' from 'CC'. At the same time, Standard & Poor's lowered its issue-level rating on the company's senior secured notes to 'D' from 'CC'. Standard & Poor's removed the ratings from CreditWatch, where they were placed Dec. 15, 2015.

On Dec. 15, Ultrapetrol announced it would not pay interest and principal on some loans, and interest on its notes. The company had a 30-day cure period to make the payments. During this time, it was able to reach forbearance agreements with some banks, but has not yet reached one with noteholders. "Because Ultrapetrol did not pay interest on the notes, and changed terms and conditions of the original loan contracts, we consider this a general default on its obligations," said Standard & Poor's credit analyst Marcus Fernandez.

We will reassess the company's financial risk profile and capital structure once negotiations with all lenders are complete.

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