Canadian Oil Sands Ltd. (fka COSWF)

[Timothy Smith]

Canadian Oil Sands (OTCQX:COSWF) is downgraded to Baa3, one notch above speculative grade, at Moody's, which cites the recent tumble in crude prices to more than six-year lows and the company's deteriorating balance sheet.

Moody’s says it expects negative free cash flow of ~C$125M (US$94M) from June 30, 2015, to Sept. 30, 2016, to be largely debt funded, and says the rating could be reduced to junk grade if the company's debt-to-earnings ratio fails to improve, which is likely if WTI prices remain below $60/bbl.