On August 23, 2017, S&P Global Ratings lowered its corporate credit rating on Northern Oil and Gas, Inc. to CCC- from CCC and its unsecured debt rating to CCC- from CCC. According to S&P Global, the downgrade reflects S&P’s view of an increased likelihood the Company could engage in a debt exchange or restructuring which would be viewed as distressed within the next six months, whereby holders of the Company’s unsecured debt would receive substantially less than par value. S&P further states that the Company continues to retain financial advisors to help it review strategic alternatives. Further, S&P believes the Company will cover any cash shortfall over the next 12 months with its credit facility maturing in 2018; however, it will need to amend and extend the facility to cover any potential shortfall next year. Read more on distressed companies.
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