S&P: Hornbeck view now stable

Standard & Poor's said it revised its outlook on Hornbeck Offshore Services Inc. to stable from negative and affirmed its B+ corporate credit rating on the company.

S&P said it also raised its issue-level rating on Hornbeck's senior unsecured debt to BB- from B+ and revised the recovery rating to 2 from 3, indicating an expectation of substantial recovery in the event of default.

"The stable outlook reflects the improvement in the company's utilization and dayrates for its offshore supply vessels and multi-purpose support vessels," said S&P credit analyst Stephen Scovotti in a news release. "It also reflects the company's improving debt leverage measures on an annualized basis and adequate liquidity."

The agency said its ratings on Hornbeck Offshore Services reflect the company's position in the volatile and cyclical marine services industry, as well as improving market conditions in the Gulf of Mexico due to an increase in new well permits.

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