S&P downgrades Diamond Offshore

S&P said it downgraded Diamond Offshore Drilling Inc. and the company’s senior unsecured debt to CCC+ from B.

“The downgrade reflects our view that Diamond’s operating margins have meaningfully weakened, and will remain depressed for the next one to two years as utilization and dayrates for offshore drilling rigs remain subdued. Although floater utilization has picked up from trough levels in 2017, recent fixtures for floaters have been relatively short term (less than 12 months) and dayrates are still close to breakeven levels,” said S&P in a news release.

The outlook is stable.

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