Moody’s changes Atwood outlook to stable

Moody's Investors Service said it revised Atwood Oceanics, Inc.'s outlook to stable from positive.

At the same time, the agency affirmed Atwood's Ba2 corporate family rating, Ba2-PD probability of default rating, Ba3 senior unsecured note rating and SGL-3 speculative grade liquidity rating.

"The stable outlook reflects our view that Atwood's deleveraging from today's 3.2x debt/EBITDA level will take longer because of the expected weakness in offshore drilling markets through 2016, and the delayed cash flow contribution from its two uncontracted ultra-deepwater (UDW) drillships that are now under construction and will arrive six months later than previously anticipated,” Moody's assistant vice president Sajjad Alam said in a news release.

"Faced with a one-two punch of oversupplied rig markets and sinking oil prices, it is unlikely that the company will achieve a level of cash flow that can meaningfully reduce leverage until late 2016."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.