S&P rates Era Group notes B

Standard & Poor's said it assigned a B corporate credit rating to Era Group Inc., along with a B senior unsecured debt rating and 4 recovery rating to its planned $200 million unsecured note issuance due 2022.

The 4 recovery rating indicates 30% to 50% expected recovery in a default.

The outlook is stable.

The proceeds will be used from the offering to repay borrowings under its revolving credit facility, S&P said.

Era is concurrently pursuing a spin-off from its parent, Seacor Holdings Inc., in which Era will become an independent public company and existing Seacor shareholders will receive shares of Era on a pro rata basis.

S&P said it expects this spin-off to close by the end of the year.

The ratings reflect the company's participation in the competitive aviation industry, limited size and scale of operations, concentrated geographic position and very aggressive credit protection measures, the agency said.

The ratings also consider Era's high-margin leasing business, a revenue base tied primarily to stable production and pipeline activities and a high percentage of fixed-contract payments, S&P said.

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