S&P lowers Atwood Oceanics view to negative

Standard & Poor's said it affirmed a BB corporate credit and senior unsecured debt ratings on Atwood Oceanics Inc. and revised the outlook to negative from stable.

The recovery rating on the company's senior unsecured notes remains at 3, indicating 50% to 70% expected default recovery.

The outlook revision reflects an expectation that Atwood's credit measures will deteriorate meaningfully in 2017 and 2018 due to depressed industry conditions, despite an anticipation of adequate debt ratios in 2016, S&P said.

The agency said the company's cash flow size and asset diversity is expected to worsen with most of company's EBITDA relying on a handful of rigs.

The negative outlook also considers an expectation that Atwood's credit measures will deteriorate in 2017 and 2018, S&P said.

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