Moody's cuts SemGroup's rating deeper into junk

NEW YORK, July 21 (Reuters) - Moody's Investors Service on Monday cut its ratings on SemGroup deeper into junk territory and said it may cut the rating again, citing the possibility of a bankruptcy filing.

Moody's said it had downgraded SemGroup on July 17, but since then SemGroup has reported that it was evaluating filing for Chapter 11 bankruptcy protection and continuing negotiations to raise new capital.

In deciding on more downgrades, Moody's said it will review the possibility of a Chapter 11 filing, SemGroup's compliance with covenants, its liquidity profile, and the prospects for losses for creditors.

SemGroup Energy Partners LP SGLP.O, which owns a number of midstream energy assets, said last week it had been informed that its parent, Semgroup L.P., is experiencing liquidity issues.

Moody's cut SemGroup's corporate family rating by three notches to "Caa2," eight steps below investment grade, from "B2." (Reporting by Dena Aubin; Editing by Leslie Adler)