S&P lowers Diamond Offshore view to negative

Standard & Poor's said it affirmed the BBB+ corporate credit and unsecured debt ratings on Diamond Offshore Drilling Inc. and revised its outlook to negative from stable.

The negative outlook reflects a view that the company’s leverage could exceed levels viewed as appropriate for the current rating, S&P said.

The agency also said it affirmed the BBB+ rating on the company's unsecured debt and A-2 short-term credit and commercial-paper rating.

The outlook revision reflects revised assumptions for day-rates and utilization of Diamond's uncontracted fleet in light of deteriorating market conditions, resulting in weaker credit measures than previously anticipated over the next two years, S&P said.

The ratings also consider the company’s strong business risk profile, significant financial risk profile and strong liquidity, the agency said.

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