Moody’s cuts Ocean Rig subsidiaries, loan, notes

Moody's Investors Service said it affirmed Ocean Rig UDW Inc.'s corporate family rating at B2, probability of default rating at B2-PD and the Caa1 rating on the $500 million unsecured notes, as well as the B2 rating on the $1.3 billion senior secured term loan at subsidiaries Drillships Ocean Ventures Inc. and Drillships Ventures Projects Inc.

Concurrently, the agency downgraded the rating on the $1.9 billion senior secured term loan borrowed by Drillships Financing Holding Inc. to B2 from B1 and the rating on the $800 million secured notes issued by Drill Rigs Holdings Inc. to B3 from B2; both are also subsidiaries of Ocean Rig.

All outlooks were revised to negative from stable.

Moody’s said the downgrades reflect its expectation that a Master Limited Partnership will not be formed in the near-term and so the Drillships Ocean Ventures loan will now share the unsecured claims of those two instruments and that the Drill Rigs notes' collateral value has deteriorated more than that of the two term loans.

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