Business

Ocean Point Faces Credit Rating Drop With "Likely" Default on Nearly $500 Million in Outstanding Debt, S&P Global Says

Earlier this month, S&P Global Ratings lowered its debt rating for Limetree Bay Terminals LLC (LBT), which now does business in the USVI as Ocean Point Terminals.  On November 17, the agency announced LBT’s debt rating had fallen to CCC- from CCC, with a negative outlook. The decision comes ahead of a February 15, 2024 maturation date for the company’s $476 million in outstanding loans.  “We believe the issuer will likely default” on the almost half a billion dollar debt, said S&P Global Ratings, “or arrange some form of distressed exchange in the next three months.” This outcome could be averted, said the ratings agency, in the event of a “material reversal in the level of contractedness or an equity injection.” However, that likelihood is low, says S&P Global Ratings. New contracts in recent months notwithstanding, LBT is unlikely to be able to repay the loan from operating cash flow alone. In addition, the credit ratings agency argues, current market conditions are not conducive ...