...Nova Chemical Corp shares tumbled 28 percent to their lowest ever on Monday after rating agencies downgraded the raw plastic maker's debt on renewed worries about the company's ability to meet its obligations....
http://www.finanznachrichten.de/...hammered-after-ratings-cut-020.htm02.02.2009 19:38
Nova Chemicals' stock hammered after ratings cut
CALGARY, Alberta, Feb 2 (Reuters) - Nova Chemical Corp shares tumbled 28 percent to their lowest ever on Monday after rating agencies downgraded the raw plastic maker's debt on renewed worries about the company's ability to meet its obligations.
Nova shares sank 64 Canadian cents to C$1.63 on the Toronto Stock Exchange, down from a 52-week high of C$31.86 set last February. Its New York-listed stock fell 27 percent to $1.31.
The shares have been under severe pressure as investors worry about debt maturities coming due, starting with a $250 million bond repayment in April, as demand for Nova's commodity plastics languishes.
Fitch Ratings downgraded Nova secured and unsecured notes and preferred shares to BB- from BB+ after banks imposed new conditions on use of the company's $350 million revolving facility.
Standard&Poor's downgraded Nova to CCC+ from B+ and said it remained on credit watch on concerns about its having to raise $100 million by the end of this month to maintain access to its credit facilities.
'The three-notch downgrade reflects what we view as Nova Chemicals' liquidity issues in light of the large debt maturities it faces in the next 18 months, heightened risk of covenant violation in the second half of 2009, and expectations of weak cash flow generation because of what we see as a severe cyclical downturn in the industry,' S&P credit analyst Jatinder Mall said in a statement.
Last week, Nova reported a $214 million fourth-quarter loss and a 36 percent drop in revenues, blaming the sputtering economy.
($1=$1.24 Canadian)
(Reporting by Jeffrey Jones; editing by Rob Wilson) Keywords: NOVA/SHARES
(jeff.jones@thomsonreuters.com; +1 403 531 1624; Reuters Messaging: jeff.jones.reuters.com@reuters.net)
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