S&P affirms Atwood Oceanics after add-on

Standard & Poor's said it affirmed the BB rating and 3 recovery rating on Atwood Oceanics Inc.'s senior unsecured notes due 2020 after the company announced a proposed $200 million add-on to the issue.

Atwood has a BB corporate credit rating and stable outlook.

The net proceeds will be used to fund its new-build program and reduce borrowings under the company's revolving credit facility in the short term, S&P said.

The ratings are based on the company's fair business risk and significant financial risk, the agency said.

The ratings primarily reflect the company's participation in a highly competitive, cyclical industry, its small fleet size and its considerable capital spending program, S&P said.

The ratings also consider its high asset and customer quality, diversified international presence, strong operating and profitable track record, good revenue visibility provided by its medium-term contracts and its moderate debt levels, the agency said.

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