S&P cuts Bristow debt, view negative

S&P said it affirmed its BB- corporate credit rating on Bristow Group Inc. and revised the outlook to negative from stable.

At the same time, the agency lowered the issue-level rating on the company's senior secured debt to BB- from BB and revised the recovery rating to 3 from 2. The 3 recovery rating reflects an expectation of meaningful (50% to 70%, high end of the range) recovery if a default occurs.

The issue-level rating on the unsecured debt remains B+ and the recovery rating remains 5. The 5 recovery rating reflects an expectation of modest (10% to 30%, low end of the range) recovery if a default occurs.

"The negative outlook reflects our view that revenue and margins could weaken further from our forecasts as the offshore oil and gas sector continues to experience a decline in activity and related spending at least until 2019," S&P credit analyst Aaron McLean said in a news release.

"Under such a scenario leverage measures could weaken to a level inconsistent with the current rating."

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