Moody's ups Pride notes

Moody's Investors Service said it upgraded the senior notes of Pride International, Inc. to Baa1 from Ba1.

The outlook is stable.

The rating action follows Ensco plc's acquisition of Pride and execution of an unconditional and irrevocable guarantee of Pride's senior notes. This concludes the ratings review of Pride that was initiated on Feb. 7.

The guarantee issued by Ensco makes the Pride senior notes effectively pari passu with Ensco's senior debt, the agency said. The Baa1 senior ratings are supported by Ensco's increased scale following the Pride acquisition, tempered by the significant increase in financial leverage.

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