S&P rates Rowan facility BB-, cuts debt

S&P said it assigned its BB- issue-level rating to Rowan Cos. Inc. subsidiary RDC Holdings Luxembourg Sarl's unsecured credit facility maturing in 2023.

The recovery rating is 2, indicating an expectation of substantial (70%-90%; rounded estimate: 85%) recovery to creditors in the event of default.

At the same time, the agency lowered its issue-level ratings on Rowan's other unsecured debt, which does not receive subsidiary guarantees, to B from B+.

S&P also revised the recovery rating to 5 from 4, reflecting an expectation of modest (10%-30%; rounded estimate: 15%) recovery.

The corporate credit rating remains B+ with a negative outlook.

“The lower issue-level and recovery ratings on the company's unsecured debt without subsidiary guarantees reflects a view that this debt is subordinated to the new credit facility, which does have guarantees,” the agency said in a news release.

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