S&P trims Rowan, rates notes B+

S&P Global Ratings said it lowered its corporate credit rating on Rowan Cos. Inc. to B+ from BB. The outlook is stable.

At the same time, S&P lowered the issue-level rating on the company's senior unsecured debt to B+ from BB. The recovery rating on this debt is 4, reflecting an expectation of meaningful (30% to 50%, upper half of the range) recovery to creditors in the event of a payment default.

S&P also assigned a B+ issue-level rating and 4 recovery rating to the company's proposed $400 million senior unsecured notes issue due 2025.

“The downgrade reflects our revised assessment for Rowan's business risk profile and our revised utilization assumptions for the company's uncontracted fleet, which results in higher leverage than we had previously anticipated in 2018 and 2019,” said S&P credit analyst Carin Dehne-Kiley in a news release.

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