S&P affirms Offshore Drilling

Standard & Poor’s said it affirmed its BB corporate credit rating on Offshore Drilling Holding SA. The outlook is stable.

S&P also affirmed the BB issue-level rating on the company’s $950 million senior secured notes due 2020 and assigned a recovery rating of 3 to the notes, indicating an expectation for a meaningful (50%-70%) recovery in the event of default.

The ratings on Offshore Drilling reflect its “somewhat uncertain” quality of cash flow, high concentration and correlation of assets, and ability to service its financial obligations, S&P said in a news release.

“This assessment also reflects a moderate financial policy and the moderate risk of recontracting the charter agreements when they expire in 2015 and 2016,” said S&P credit analyst Maria del Sol Gonzalez in a news release.

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