S&P rates Hercules secured notes B+, unsecured B-

Standard & Poor's said it assigned a B+ rating and 1 recovery rating to Hercules Offshore Inc.'s $300 million senior secured notes due 2017.

The 1 rating indicates 90% to 100% expected recovery in a default.

S&P also assigned a B- rating and 4 recovery rating to the company's $200 million new senior unsecured notes due 2019. The 4 rating indicates 30% to 50% expected recovery in a default.

The agency also revised the recovery rating on Hercules' existing 10½% $300 million notes to 4 from 3, indicating 30% to 50% expected recovery in a default. The rating on these notes remains at B-.

The ratings reflect the company's participation in the highly volatile and competitive shallow-water drilling and marine services segments of the oil and gas industry, S&P said.

The ratings also consider an expectation that day rates and utilization for the company's jack-up rigs in the U.S. Gulf of Mexico will remain robust throughout 2012, the agency said.

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