S&P lowers Rowan

S&P said it lowered its issuer credit rating on Rowan Cos. Inc. to B from B+. The outlook is negative.

At the same time, S&P assigned a B issuer credit rating to Rowan Cos. plc, the parent of Rowan Cos. Inc. The outlook is negative.

In addition, S&P said it lowered the issue-level rating on the company's unsecured credit facilities to B+ from BB-. The recovery ratings on the facilities remain 2, reflecting an expectation of substantial (70%-90%; rounded estimate: 85%) recovery in the event of default.

S&P also lowered the issue-level rating on the company's senior unsecured debt without subsidiary guarantees to B- from B. The recovery rating remains 5, reflecting an expectation of modest (10%-30%; rounded estimate: 20%) recovery in the event of default.

“The downgrade reflects our view that market conditions in the offshore contract drilling services sector will remain depressed over the next 18 to 24 months,” S&P said in a news release.

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