S&P assigns RDS Ultra-Deepwater notes B-

Standard & Poor's said it assigned a B- rating to $270 million in senior secured notes due 2017 issued by RDS Ultra-Deepwater Ltd.

The outlook is stable.

The rating reflects that the notes are subordinated to a senior bank loan in interest and principal payments, S&P said.

The rating also considers the expected exposure to re-contracting and refinancing risk given their seven-year tenor compared with a five-year charter contract with Mexican oil company, Petroleos Mexicanos, and an expectation that at maturity there will be $132 million outstanding under the notes, S&P said.

The stable outlook reflects an expectation that the project will post an adequate operating and financial performance through the notes' remaining life, the agency said.

© 2015 Prospect News.
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