S&P lowers Eurasia Drilling

Standard & Poor's said it lowered its long-term corporate credit rating on Eurasia Drilling Co. to BB from BB+. The outlook is negative.

S&P also lowered its Russia national scale rating on the company to ruAA from ruAA+.

At the same time, S&P removed both ratings from CreditWatch negative, where the agency had placed them on Oct. 19, and affirmed its B short-term corporate credit rating on the company.

S&P also lowered its issue rating on Eurasia Drilling’s senior unsecured debt to BB from BB+. The recovery rating remains 3, reflecting S&P’s expectation of recovery in the lower half of the 50%-70% range, in case of default.

The rating actions reflect S&P’s view of the company’s increased leverage following the issuance of $300 million of new debt (not rated) to finance the company’s delisting from the London Stock Exchange via a buyback of its free float from the market.

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