S&P Cuts OGX

S&P has cut Brazil’s OGX’s credit rating to B minus from B, citing poor production expectations and cash concerns. In the latest bit of bad news for Eike Batista companies, S&P expects the oil producer may burn through funds this year and have to find more for 2014. “Although the company does not have any significant debt maturity until 2018 when the $2.6bn bond is due, we believe that OGX will consume almost all of its $1.6bn in cash, as of December 2012, to fund capital expenditures and interest payments during 2013,” the agency says. The outlook is negative. OGX 2018 bonds traded down slightly Thursday, finishing at 79-80, according to a trader.